Current UK Islamic mortgage rates

What a headline rate misses

A headline rate hides two different things, and they are worth keeping apart. Deposit tier, customer type, finance amount and product conditions decide which rates you can reach at all. Fees decide which of the rates you can reach is actually the cheapest.

Your deposit tier

The same provider prices each tier separately, and the gap between tiers is usually far larger than the gap between providers within one.

Your customer type

UK resident, British expat and international ranges are priced differently and are not interchangeable.

Your finance amount

Every product has a minimum and a maximum, and they differ between providers. Two people at the same deposit tier can face different sets of rates for that reason alone: at the time of our last check, one mainstream provider started at £75,000 and another at £60,000, so a smaller amount of finance can rule out the cheapest row in a table without changing anything else about the buyer.

Conditions on the product

Some rates depend on the property or the transaction: an energy rating, a new build, or buying rather than refinancing. A rate you cannot access is not a rate, so every row above carries its own.

The fees, once you have the shortlist

A flat fee weighs more heavily on a smaller amount of finance, so among the products you can actually have, a lower rate can still be the dearer deal. Work out which is cheaper on your figures

What has changed

We began tracking these rates on 6 August 2026. We hold one verified reading for each product, so there is no rate history to show yet, and we would rather say that than draw a line through a single point.

From here, every re-check records the previous figure alongside the new one. The value of this page is meant to accumulate: in three months it can show which products moved and when, which is the part nobody can copy on the day they decide to.

Rate movements recorded

None yet. Each product currently has one verified observation, so we have not yet established a rate movement. That is a statement about our record rather than about the market: with a single reading per product we cannot see a rate that changed and changed back between checks. The first re-check that differs from the reading before it becomes the first entry here.

Separately, we have published 73 corrections to our own records across this site, some of which changed figures on this page. Those are our errors rather than market movement, so they are kept out of the list above and written up in full, dated, alongside what we originally got wrong. See the change log

How we track rates

We read each provider's own rate card and product pages, record every product separately with the conditions attached to it, and keep four dates apart: when the card became effective, when the provider published it, when we last checked it, and when the next check is due.

A card effective in April that was still on the provider's live page when we checked it is current as of that check. We show the effective date so you can see how long a price has held, without implying that an older effective date makes a figure stale.

Review interval

Rates 14 days, criteria 60 days.

What we exclude

Any figure we cannot attribute to a specific product, including advertised "rates from" claims.

What we publish anyway

Products whose rate we could not verify, stated as unverified rather than omitted.

Read the full methodology · See every provider with its criteria and evidence

Common questions about Islamic mortgage rates

What is the current Islamic mortgage rate in the UK?

There is no single rate. The lowest published initial rate we hold for a UK resident on a two-year fixed home purchase plan at up to 80% finance-to-value is 5.58% from Gatehouse Bank (Green Fixed 2yr GHFU1747), with £499 product fee plus £149 application fee, checked on 6 August 2026. That product is conditional: EPC A or B required. A property that does not meet it faces 5.68% as the lowest in the same band. Change the deposit tier, the fixed period or the customer type and a different product is cheapest, which is why every table on this page holds one of each before it ranks anything.

Are halal mortgage rates and Islamic mortgage rates different?

No. They are two names for the same thing. Most UK providers open to residents offer Home Purchase Plans, where the published figure is a rent or profit rate on a co-ownership or lease structure rather than interest on a loan. Some specialist and international propositions use a different Sharia-compliant structure, commonly commodity murabaha, which is why we list those separately instead of ranking them against the plans. Within a matched band the numbers are quoted the same way and can be compared like for like.

Why do you not show one lowest Islamic mortgage rate?

Because the claim would usually be false. A rate is only the lowest within a set that shares a customer type, a rate type, a fixed period and a finance-to-value tier. Two products at different deposit tiers are not competitors, and the gap between tiers is normally larger than the gap between providers inside one. We publish a single headline figure and state the four conditions it holds under, plus any eligibility condition attached to the winning product itself.

Why can I not get the lowest Islamic mortgage rate shown?

Because the cheapest product in a band often carries a condition the band itself does not describe. The lowest UK-resident two-year fixed rates we hold are green products that require an EPC rating of A or B, so a property rated C to E cannot access them and faces the standard product instead, usually about a tenth of a point higher. At the 95% tier the cheapest products are purchase-only, so they are not available for refinancing at any price. Wherever the lowest rate in a table is conditional, we print the condition and the lowest unconditional alternative directly beneath the heading.

Is a lower rate always the cheaper Islamic mortgage?

No. A product fee is a fixed sum, so it weighs more heavily on a smaller amount of finance. A product with a lower rate and a higher fee can cost more over a two-year fixed period than one with a higher rate and no fee. Which wins depends on your finance amount and how long you hold the product, so it has to be worked out on your own figures.

How often are these Islamic mortgage rates updated?

We re-check rates every 14 days and criteria every 60. This record was last checked in full on 6 August 2026. We keep the date a provider's rate card became effective separate from the date we checked it, because a card effective months ago that is still live today is current rather than stale.

Why is one provider missing a rate?

We publish a product whose rate we could not verify as unverified rather than dropping it. One provider in our register publishes rates in a form we have not been able to capture reliably, so its products appear without a figure instead of with a wrong one. An advertised "rates from" claim is recorded separately and never entered into a table, because a number with no deposit tier, period or customer type attached cannot be ranked against one that has all three.