A halal mortgage?

We get this question a lot. In all honesty, a product called a ‘mortgage’ is unlikely to be halal or Shariah-compliant. The word ‘mortgage’ originates from two Latin words meaning ‘death pledge’ – not very appealing, right? That’s why we offer a clear alternative: Pfida’s home buying product, OwnTogether.

Partners, in it together.

OwnTogether operates as a partnership agreement, making us partners. Since we’re in it together, we prioritise flexibility and genuine risk sharing.

How does it work?

How is it halal and
Shariah-compliant?

Our products are fully Shariah-compliant and have been reviewed by Sheikh Haitham Al-Haddad and the Islamic Council of Europe. Integrity and ethical practice underpin everything we do, aiming for mutual benefit for everyone involved.

Click here to view our certificates.

Here why our home buying product, OwnTogether, remains halal:

Debt-free

Our home buying product, OwnTogether, means we jointly own the property. You’re under no obligation to buy out our share, so there’s no debt involved. This approach removes any early or late repayment fees linked to purchasing additional equity.

Not pegged to interest

The rent we charge does not relate to macroeconomic indicators such as interest rates. Instead, it is determined by a number of factors including the local rental market, with annual rent reviews capped to reduce uncertainty.

Affordability

We sell you the property at the original purchase price, not the current market value, and offer rental discounts (unlike other shared ownership schemes), making it as affordable as possible.

True risk sharing

If there’s a loss or shortfall upon sale, proceeds are fairly split based on respective partnership shares, unlike traditional banks that typically claim proceeds first, potentially leaving the buyer with nothing.

Ultimate flexibility

Our technology empowers you to manage your journey through your account dashboard. Adjust your equity payments or choose to pay rent only whenever needed.

Your equity, your choice

We minimise foreclosure risks by introducing an equity buffer, allowing you to pay in equity if rent becomes temporarily unaffordable. You can buy back equity at your own pace later.

Riba vs. Rent – what’s the difference?

We often get asked if interest is hidden within rent charges. Here’s a clear distinction:

Scenario 1

You borrow money from a lender, accruing debt and interest over time.

Scenario 2

You own an asset with us and pay rent on the portion you don’t own, without contractual debt obligations.

OwnTogether operates like Scenario 2. There’s no contractual obligation for you to buy our share, giving you genuine flexibility without the burden of debt.

Finance Term Explained:

We suggest a preferred timeline for purchasing full equity in your home, which helps you plan monthly rent and equity contributions. However, these suggestions are flexible, not contractual obligations.

Ultimately, our goal remains helping you achieve homeownership in a halal and Shariah-compliant manner.

What do the industry experts say?

A genuine Islamic partnership. I strongly believe that this will be a real contribution to Islamic Finance and help all of society.

Sheikh Haitham Al-Haddad

Islamic Council

At last! We’ve waited so long in the UK for a mortgage product that genuinely attempts to share risk and give the customer, whether Muslim or non-Muslim, a fair deal.

Ashley Freeman

CEO, Gateway LLP

Primary Finance is all about the efficient and effective mobilisation of funds for the benefit of the ordinary person in the real economy.

David Vicary

Managing Director, DVA Consulting

I’ve worked in the Islamic finance industry for a long time and I’ve rarely seen a product that addresses grassroots issues in the way Primary Finance has managed.

Harris Irfan

Chairman, UK Islamic FinTech Panel

I’m delighted to give my support to the Primary Finance Home Purchase Plan. This carries all of the justice and risk sharing that an Islamic contract should have, in a way which I have not seen in any of the other products currently available.

Tarek El Diwani

Islamic Finance Expert

One of the great things about Primary Finance is that it’s community-based finance that is going to enable and uplift the community. I would say to all of you to get behind them in any way that you can.

Umer Suleman

Islamic Council of Europe

Join the waiting list for home finance.

By registering a Pfida account, we’ll automatically add you to the public waiting list for home finance. The current estimated waiting time for home finance is 5 years, with an initial equity contribution (deposit) from you. We recommend 20% to all our customers, but we do accept 15% as your initial equity contribution.

GYS account holders have a different waiting list. Check the waiting list here.

Your wait time is dependent on a number of factors, such as how much deposit you have, how much finance you need and your affordability. You can tell us this information by completing the finance requirements form after registering your account.

Join the waiting list