Who holds that it is haram?

OIC International Islamic Fiqh Academy and AAOIFI (majority view): An interest-bearing home loan is riba and is not permitted.

Who holds that it is halal?

European Council for Fatwa and Research (1999): Permitted for Muslims in the West buying a first family home, out of need, where no Islamic alternative is available.

What is the halal alternative?

An Islamic home purchase plan (ijara or diminishing musharaka), offered in the UK by providers such as Al Rayan Bank, Gatehouse Bank and StrideUp.

Is a conventional mortgage halal?

Scholars differ. A conventional mortgage is an interest-bearing loan. Most scholarly bodies prohibit it; one well-known opinion allows it for a family home in the West when there is no alternative.

Scholars differ · Money and investing · From the Halal or Not? rulebook, checked 28 September 2026

The views, and who holds them

Held by	Verdict	Reasoning
OIC International Islamic Fiqh Academy and AAOIFI (majority view)	Haram	An interest-bearing home loan is riba and is not permitted.
European Council for Fatwa and Research (1999)	Halal	Permitted for Muslims in the West buying a first family home, out of need, where no Islamic alternative is available.

Halal alternatives

An Islamic home purchase plan (ijara or diminishing musharaka), offered in the UK by providers such as Al Rayan Bank, Gatehouse Bank and StrideUp.

Quick answers

Is a conventional mortgage halal?: Scholars differ. A conventional mortgage is an interest-bearing loan. Most scholarly bodies prohibit it; one well-known opinion allows it for a family home in the West when there is no alternative.
Who holds that it is haram?: OIC International Islamic Fiqh Academy and AAOIFI (majority view): An interest-bearing home loan is riba and is not permitted.
Who holds that it is halal?: European Council for Fatwa and Research (1999): Permitted for Muslims in the West buying a first family home, out of need, where no Islamic alternative is available.
What is the halal alternative?: An Islamic home purchase plan (ijara or diminishing musharaka), offered in the UK by providers such as Al Rayan Bank, Gatehouse Bank and StrideUp.

Sources

Halal or Not? rulebook topic “Conventional mortgages”, live answer (checked 28 September 2026)
OIC International Islamic Fiqh Academy and AAOIFI (majority view)
European Council for Fatwa and Research (1999)

Information, not a fatwa. Where scholars differ, this shows the main views so you can follow the one you already follow or ask a scholar you trust.

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