HSBC mortgages get Shariah updates

HSBC mortgages and financial packages which are conducted according to Shariah law have today been given an update.

Residential leasehold flats will now qualify for Amanah home finance, while the minimum balance requirement on Shariah current accounts goes down to just £250.

Amjid Ali, UK head of HSBC Amanah, said: "Purchasing a leasehold property using a Shariah compliant home purchase scheme is more complicated than using a conventional mortgage because the bank is effectively sub-letting the property to the customer, which requires permission from the leaseholder prior to completion."

"HSBC Amanah has the expertise to overcome such complexities and works closely with an independent Shariah supervisory committee of world renowned scholars to ensure our products adhere to Shariah law."

Mr Ali said that HSBC's Islamic financial services sector was "continually evolving", adding that likely products in the future would include Takaful3 insurance, commercial finance and savings accounts.

Since HSBC's Islamic finance division launched in 1998, over 1,500 people have applied for £176 million of Amanah home finance and more than 1,000 Shariah current accounts have been opened.