Islamic mortgages growing in popularity

The Islamic finance industry is growing at a remarkable rate and one expert said that this is partly because people of other faiths are attracted to the products on offer.

Products such as Islamic mortgages are becoming increasingly popular in the West, with worldwide growth of around 15-20 per cent.

According to Junaid Bhatti, Islamic finance expert and director of Ballencrieff House, many Westerners are attracted to Islamic finance because it focuses on ethical investments only.

"Halal finance is as important as halal meat. There is also a growing movement across the developed world to live a life with ethical principles, and non-Muslims are also taking an interest in Islamic finance because it promises to protect customers' money from use in unethical businesses," he said.

"In the past decade this growth has been driven by development in the Muslim world. However, in the last five years, the industry has started to make headway in the West too," continued Mr Bhatti.

There is no doubt that Islamic mortgages are growing in popularity in the UK, with Mr Bhatti claiming that some of the country's mainstream lenders have around 10,000 Islamic mortgage customers.