Three quarters of UK Muslims (76%) believe it is important to have financial products which fit with their religious values, new research from ethical lender StrideUp has indicated.

The study, conducted on behalf of StrideUp by Pegasus Insight, also found that two in five UK Muslims (41%) believe this is “very important”.

StrideUp’s research was based on a study among 200 UK adults and found that 82% of UK Muslims would agree that Islamic Finance aligns with their values and beliefs, while 65% of Muslim conventional mortgage holders said they would prefer to take out an Islamic Finance product when they next take out property finance.

CEO at StrideUp CEO, Sakeeb Zaman, said the study had “confirmed the importance of Shariah-compliant finance products” for the Muslim population.

“A key differentiator of Islamic finance vs conventional products is the absence of interest – which is prohibited in Islam,” Zaman commented. “Most Muslims see it as a more ethical option which aligns with their values, and our research points to these products as being highly regarded in the community.

“However, the biggest barrier to greater take-up is the lack of available information about home purchase plans, so brokers have an important role to play in helping their Muslim clients access the products they need to buy a new home or refinance their existing property.”

StrideUp is a new provider focusing on Muslims whose faith requires them to avoid paying or receiving interest.

Through its home purchase plan product, the lender gives these individuals a way to become homeowners without compromising on their values. The product is designed to be inclusive for customers and equally attracts some non-Muslims due to its features.

“StrideUp works with a wide range of mortgage broker,” Zaman added. “Some will advise the client directly; others will refer the client to StrideUp’s team of in-house advisers who can provide the advice. In either case, a procuration fee will be paid to the introducing broker.”

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