The Islamic Mortgage alternative

The new way for Muslims to buy a home without ever paying interest

If you want to become a homeowner, while respecting your beliefs, it might feel like you only have a few options to choose from.

But what if you don't want an Islamic mortgage? Or you can't save a large deposit to make one work?

We believe everyone should have more choices when it comes to buying a home.

That's why we created Gradual Homeownership. It's the Shariah compliant, no interest alternative to an Islamic mortgage, which makes it easier for Muslims to own a home in line with your faith.

Frequently asked questions

Is Gradual Homeownership Shariah compliant?

Yes. We are certified as Shariah compliant by Amanah Advisors.

What is the Islamic structure of Gradual Homeownership?

Gradual Homeownership is based on the popular and renowned structure of Diminishing Musharakah and Ijarah.

This means there's joint ownership in an asset (in this case, a home). As our customer you can buy more of the home from us* at any time. As you do this, you increase the amount of the home you own.

For the part of the home you don't own yet, you pay rent to us. When you buy more of the home, we decrease how much you pay us in rent.

What is Diminishing Musharakah?

A Diminishing Musharakah is a famous Islamic Finance product where a funder (that's us) and their customers (that's you) participate in a joint purchase and joint ownership of an asset, which is then leased and gradually sold to the customer.

As a Wayhome customer, you buy a home alongside us in partnership. When you buy more of your home from us, you're buying more of the partnership. This increases the amount of the home you own.

How do I know Gradual Homeownership remains Shariah compliant?

Amanah Advisors and The Islamic Council of Europe make sure that Gradual Homeownership continues to be Shariah compliant by carrying out regular Shariah review and Shariah audits.

If there's any update or change to the product, it must be reviewed and certified by Amanah Advisors and The Islamic Council of Europe before it's introduced.

I'm concerned about having to get insurance, do you make me do this?

Insurance is a common requirement for other home buying schemes, like Islamic 'Home Purchase Plans' (HPPs).

To protect Wayhome's interests in all of the homes we buy with our customers, we* get an insurance policy that covers each of them.

As we're the ones getting the insurance, we pay the premiums to the insurer. This means you don't pay for the insurance directly and you're not named as the policy holder. Instead, you pay an amount to us each month, which reimburses us for the cost of the insurance over time.

This payment (which we call Home Support Costs) is collected monthly alongside your rent. As an example, if your rent is £1,000 per month and your Home Support Costs are £4.50 per month, you pay £1,004.50 each month to us.

Wayhome doesn't make you get any insurance for the contents of your home or any other insurances you may need. However, we'd recommend considering available options that align with your beliefs, like Islamic Insurance (Takaful).

How is this different to an Islamic mortgage?

With us, you don't need a mortgage. Instead we buy the home with you, as a partner. If you buy 5%, we pay for the remaining 95%. You own the bit of the home you buy, and you pay rent for the part you don't own yet.

Where does Wayhome get its money from?

We've partnered with big organisations, like pension funds, to help you buy a home. Through us, they're able to invest in residential homes and help people like you get onto the housing ladder.

If Wayhome doesn't charge any interest, how does it make its money?

We make our money by charging a fee to the big organisations for helping them to invest in the residential property market. We don't charge you any fees or any interest at any point.

Is this like Shared Ownership?

No, we're actually very different. Unlike Shared Ownership, we don't buy brand new builds and you don't have to get a mortgage. We also make it much easier for you to buy more of your home and you can do this whenever you like from as little as £50.