Unprecedented launch of new websites sees global growth of Islamic mortgages

The UK has seen a significant rise in Islamic finance products and to that extent the take up of these products by its 2.5m Muslims. Although the market is still at its infancy stage, the growth in Islamic mortgage websites is ample proof of a buoyant market place.

The recent OnlineMarketing conference in London, held last month, show cased online advances in sales, marketing, research and information management.  The changing online market particularly for financial services could see it reaching new height over the next decade.  One significant factor which came across the two day event was the focus on the 'individual consumer'.  Mass market marketing will give way to pay per click advertising, Search and one to one e-marketing campaigns.

Nusrat Janjua, marketing director, explained: 'Having online presence is now not an option, for certain sectors, including finance, it is a must requirement.  Before any product or service is launched you must have a strategic online plan in place in the first instance.  Let's not kid our self's the customer has much more confidence in the internet and in 'Search' in general.  The recent high profile valuations of www.moneysuspermarket.com and www.confused.com have paved the way for many entrepreneurs to try their luck.'

The Islamic mortgage and finance market is no different.  Individuals are chancing their entrepreneurial flair by launching any and all like minded websites, to that of the original www.islamicmortgages.co.uk. Nusrat continued, '….we are pleased to see this, since it means that more people are getting the messages across of the real benefits of Islamic financial products to their religious requirements.'

The original two online websites on Islamic mortgages are www.islamicmortgages.co.uk and www.halalmortgages.com ; both have a long history within the market place, together with a comprehensive understanding of Islamic mortgages and Islamic finance.   Of the leading intermediaries in the business, The Mortgage Times Group now offers its members access to the Alhi United Bank and Alburaq products. 

Changes in the recent FSA regulation has seen HSBC Amanah stop its intermediary business and now only accepts client's walking into one of its branches, whilst Albuarq continues to innovate and lead the market developments.  Most recently, Alburaq have launched a range of buy to let products, a 99% first time buyer product for professionals and currently it is piloting a share-ownership scheme product.

The UK is seen as one of the leading countries to offer a range of Islamic finance products.  To some extent, the UK has more Islamic based products then some Islamic countries in the Middle East and Asia.  Recently, there has been talk of the Bank of Ireland launching a residential Islamic mortgage in the Republic of Ireland, along the lines of its existing commercial product 'Amaar'.  

USA and Canada have an evolving market, with a limited number of products and providers.  With significantly larger Muslim populous in these countries compared to the UK, establishing an early presence could reap rewards for the future.  The Middle East and South Asian block, where Malaysia is still seen as the hub of Islamic financial thinking - market growth here is increasing.  India is viewed by many analysts as a serious growth market for the future; it currently has one of the largest Muslim populations in the world, and rampant economic growth.  The demands for Islamic based financial solutions will make India one of the future centres of Islamic finance; since it also bodes some of the leading Islamic scholars in the world.

The level of take up by many European countries is very low, localised laws, regulation and policy, has not allowed duplication or mirroring of products across Europe as a whole under the single European banner; although Netherlands has been one of the early movers with this regard.

Nevertheless, we still have a situation where the 'Islamicness' of these products is still under question, as well as the lack of transparency within the market place, comparable products, and the lack of a truly global Islamic product.  A recent, visitor to www.islamicmortgages.co.uk said '...we are still eagerly awaiting a truly Islamic mortgage product, one which has no element of rate charge or libor link.'