4 in 5 Muslims want financial products that fit their religious beliefs
19 February 2024
Four in five (76%) UK Muslims say it’s important to have financial products which fit with their religious values, with 41% saying this is ‘very important’, according to research from StrideUp conducted by Pegasus Insight.
The study found 82% of UK Muslims agree that Islamic Finance aligns with their values and beliefs, with 65% of Muslim conventional mortgage holders saying they would prefer to take out an Islamic Finance product when they next take out property finance. StrideUp is a new provider focusing on Muslims whose faith requires them to avoid paying or receiving interest. Through an innovative home purchase plan (HPP) product, StrideUp gives these individuals a way to become homeowners without compromising on their values. The product is designed to be fair and inclusive for all customers and equally attracts some non-Muslims simply due to its features.
StrideUp adopts a pragmatic approach to underwriting and works closely with brokers to achieve a good outcome for clients. This includes serving foreign nationals with just a 15% deposit and just 1 year remaining on their visa, customers being supported by family and friends with gifted deposits, last year’s income accepted for self-employed applicants, and contractors assessed up to daily rate x 5 days x 48 weeks.
Sakeeb Zaman, CEO at StrideUp, commented: “Our recent study has confirmed the importance of Shariah-compliant finance products for the Muslim population. A key differentiator of Islamic finance vs conventional products is the absence of interest – which is prohibited in Islam. Most Muslims see it as a more ethical option which aligns with their values, and our research points to these products as being highly regarded in the community.”
“However, the biggest barrier to greater take-up is the lack of available information about home purchase plans, so brokers have an important role to play in helping their Muslim clients access the products they need to buy a new home or refinance their existing property.”
“StrideUp works with a wide range of mortgage brokers. Some will advise the client directly; others will refer the client to StrideUp’s team of in-house advisers who can provide the advice. In either case, a procuration fee will be paid to the introducing broker”.
