A halal mortgage in Birmingham means a Home Purchase Plan from Gatehouse Bank, StrideUp or Offa, or a place on Pfida's waiting list, because all four finance property in England and none excludes the West Midlands. The UK House Price Index put the average Birmingham home at £234,257 in July 2026, so the deposit is £11,713 at 5% (Gatehouse or Offa), £23,426 at 10% (StrideUp) or £46,851 at 20%. A first-time buyer pays no stamp duty at that price. Financing 80% of that average home on Gatehouse's published two-year fixed rental rate of 5.68% over 25 years works out at about £1,171 a month. Al Rayan Bank, long associated with the city, now runs from London and does not offer new home finance to UK residents. The home financing hub has the full provider list.
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What Birmingham property costs in 2026
HM Land Registry's UK House Price Index for Birmingham showed an average price of £234,257 across all property types in July 2026, up 2.5% on a year earlier after a flat stretch through the winter. The averages by type matter more for a buyer than the headline: semi-detached houses averaged £275,144, terraced houses £221,903 and flats and maisonettes £144,814 in the same month. The city therefore sits well below the £300,000 first-time buyer stamp duty threshold for most house types, and even a semi-detached purchase leaves headroom. Those are averages across the whole city; prices in Edgbaston, Harborne and Moseley sit well above them, while much of east Birmingham sits below.
| Property type (Birmingham, July 2026) | Average price | 5% deposit | 10% deposit | 20% deposit |
|---|---|---|---|---|
| All property types | £234,257 | £11,713 | £23,426 | £46,851 |
| Semi-detached | £275,144 | £13,757 | £27,514 | £55,029 |
| Terraced | £221,903 | £11,095 | £22,190 | £44,381 |
| Flats and maisonettes | £144,814 | £7,241 | £14,481 | £28,963 |
Stamp duty on a Birmingham Home Purchase Plan
Stamp Duty Land Tax is charged once on a Home Purchase Plan, on the full purchase price, exactly as it would be on a conventional purchase; the relief that prevents a second charge when the bank's share is transferred to you is explained in our stamp duty and HPP article. On the gov.uk rates in force on 7 September 2026, a first-time buyer pays nothing up to £300,000 and 5% on the portion from £300,001 to £500,000, so every average Birmingham figure above produces a nil bill. A buyer who has owned before pays 0% on the first £125,000 and 2% on the next £125,000, which is £2,185 on the £234,257 average. Anyone who will own a second property pays a 5% surcharge on top, taking the same purchase to about £13,898.
| Buyer type | Price £234,257 | Price £275,144 (semi) | Price £144,814 (flat) |
|---|---|---|---|
| First-time buyer | £0 | £0 | £0 |
| Mover, only property | £2,185 | £3,003 | £396 |
| Additional property (5% surcharge) | £13,898 | £16,760 | £7,637 |
Which providers finance Birmingham property
Gatehouse Bank finances houses and flats across England and Wales. Its UK resident Home Purchase Plan range on 7 September 2026 ran from 65% to 95% finance to value, with a minimum finance amount of £75,000, which means a Birmingham flat at the £144,814 average needs at least a 48% deposit to reach the minimum finance, while any average-priced house clears it comfortably. The 95% products are capped at £600,000 of finance and the 80% products run to £5 million. Buildings insurance is a condition of the finance, and the bank's FAQs state that its Standard Valuation Report is for its own security purposes only, so budget for your own survey.
StrideUp, FCA-regulated under reference 785299 with its HPP certified by Amanah Advisors, finances property in England only, which includes Birmingham. Its eligibility page lists minimum finance of £50,000, maximum £1.5 million, minimum property value £75,000, a 10% deposit on standard houses and flats, 15% on new build houses and 20% on new build flats, and leases with at least 40 years remaining at the end of the plan. It does not accept freehold flats, large high-rise ex-local-authority blocks, or Right to Buy, Right to Acquire and Shared Ownership purchases. Its site names Birmingham among the cities it serves. Offa is the one provider with a West Midlands address, at Dominion Court, 39 Station Road, Solihull, and finances property in England and Wales with a 5% minimum deposit, minimum property value of £80,000, minimum finance of £60,000 and up to seven times income, with its products certified by Amanah Advisors. Pfida runs a points-based waiting list for its OwnTogether co-ownership product and does not publish rates or criteria in the same way; it is a London company that finances across the UK.
| Provider | Min deposit | Min finance | Min property value | Birmingham coverage | Local office |
|---|---|---|---|---|---|
| Gatehouse Bank | 5% (houses, to £600k finance) | £75,000 | Not stated | Yes, England and Wales | No, London bank |
| StrideUp | 10%; 15% new build house; 20% new build flat | £50,000 | £75,000 | Yes, England only | No, London |
| Offa | 5% | £60,000 | £80,000 | Yes, England and Wales | Yes, Solihull B91 |
| Pfida | Not published, waiting list | Not published | Not published | Yes, UK | No, London |
| Al Rayan Bank | Negotiable, Premier only | Not published | Not published | GCC applicants only | No, head office London |
Where Al Rayan Bank went, and what HBZ Sirat's Edgbaston branch can do
Birmingham searchers still look for Al Rayan Bank because the bank was built in the city. On 7 September 2026 its website gave a registered office at 4 Stratford Place, London W1C 1AT, described the official opening of a new head office in London in July 2023, and listed no branches on its contact page, offering digital banking, a telephone line open 10am to 4pm on weekdays and a London PO Box. Al Rayan Bank states that it now focuses on Structured Real Estate and Premier Banking, and its only new residential product, Premier Home Finance, is open to applicants from Qatar, Saudi Arabia, Kuwait, Bahrain and Oman. Existing Home Purchase Plan customers in Birmingham are still served, and the site's HPP support pages cover rent reviews, additional acquisition payments and product switches, but a Birmingham buyer cannot start a new application there.
The only Islamic banking counter in the city belongs to HBZ Sirat, whose Birmingham branch is at Ground Floor, Pinnacle House, 8 Harborne Road, Edgbaston, B15 3AA, open 9am to 5pm Monday to Friday. Sirat offers a qard hasan current account, savings and wakala deposits, and its property finance range is Income Generating Property Finance, which is buy-to-let. A branch is useful for opening a current account, depositing a gifted deposit, certifying documents and holding savings while you search, but it will not write the finance on your own home. Offa's Solihull office is the nearest home-finance presence; in practice all four HPP providers run applications online and by phone, and a Birmingham buyer loses nothing by applying remotely.
What a Birmingham Home Purchase Plan costs each month
Take the all-types average of £234,257 with a 20% deposit of £46,851, leaving £187,406 to finance. Gatehouse's UK resident product fixed for two years at up to 80% finance to value carried an initial rental rate of 5.68% and a £499 product fee on 7 September 2026, with a £149 application fee. On an acquisition and rent plan over 25 years, the arithmetic that every HPP calculator runs gives a monthly payment of about £1,171. In month one roughly £887 of that is rent on the bank's 80% share and £284 is acquisition of further equity; the split shifts towards acquisition every month. When the fixed period ends the balance of about £180,205 would revert to the Standard Variable Rate, 7.25% on the day, which lifts the payment to about £1,344 unless you switch to a new fixed product.
With only 5% down the same house needs £222,544 of finance, and Gatehouse's 95% two-year fixed product carried 6.78% with a £999 fee, giving about £1,542 a month over 25 years. Offa's UK resident two-year fixed at 95% finance to value carried 7.45% with a £999 fee, which comes to about £1,637 on the same figures, and its 80% product at 6.65% with a £499 fee gives about £1,283 on the 20% deposit case. StrideUp publishes rates only through its online calculator, which showed a £1,249 product fee but no static rate on the page we fetched, so treat it as quote-only. These are illustrations using published rates, not offers; the mortgage calculator lets you run your own figures and the deposits and affordability guide covers the income tests.
What to have ready before you apply
- Three months of payslips and bank statements, or two years of accounts if self-employed (StrideUp accepts self-employed income from one year).
- Proof of deposit and, for gifted money, a signed gift declaration; StrideUp and Offa both accept family gifts and Offa's Family Assist lets relatives join the plan without owning the property.
- A Decision in Principle from Gatehouse, StrideUp or Offa before making offers, since all three provide one online.
- A budget for the application and product fees (£149 and £499 or £999 at Gatehouse, £1,249 at StrideUp, £499 or £999 at Offa), valuation and your own survey, and legal costs.
- A buildings insurance quote, which every provider requires from completion.
- A halal current account for the deposit to sit in; HBZ Sirat's Edgbaston branch is the local option, and the first-time buyer pathway sets out the order of steps.
Our view
A Birmingham first-time buyer with a 10% to 20% deposit should take a Decision in Principle from Gatehouse Bank first, because its published 80% rate of 5.68% is the lowest in the market and the bank is PRA-regulated, and from StrideUp second if the income multiple or credit history is tighter than the bank will accept. A buyer with only 5% should compare Gatehouse's 95% product against Offa's, and lean to Offa if a higher income multiple is needed or Family Assist helps. A buyer of a flat below about £150,000 may fall under Gatehouse's £75,000 minimum finance and should look at StrideUp's £50,000 or Offa's £60,000 floor. Nobody in Birmingham should wait for Al Rayan to return to the city. Facts checked against landregistry.data.gov.uk, gov.uk, gatehousebank.com, strideup.co, offa.co.uk, alrayanbank.co.uk, habibbank.com on 7 September 2026.
Frequently asked questions
Which banks offer halal mortgages in Birmingham?
Among banks, only Gatehouse Bank writes new Home Purchase Plans for UK residents, and it finances across England and Wales including Birmingham. The FCA-regulated non-bank providers StrideUp and Offa also cover the city, and Pfida offers a waiting-list co-ownership model. Al Rayan Bank, historically a Birmingham institution, now operates from London and offers new home finance only to Gulf applicants through its Premier service.
How much deposit do I need for a halal mortgage in Birmingham?
On the July 2026 UK House Price Index average of £234,257, a 5% deposit is £11,713, 10% is £23,426 and 20% is £46,851. Gatehouse and Offa accept 5% on standard houses, while StrideUp requires 10%, rising to 15% for new build houses and 20% for new build flats. A larger deposit brings lower rental rates, with Gatehouse's 80% product priced at 5.68% against 6.78% at 95%.
Does Al Rayan Bank still have a branch in Birmingham?
Not according to its website on 7 September 2026. The contact page lists digital banking, a telephone line and a London PO Box, with no branch addresses, and the about page gives a London registered office and head office opened in July 2023. Existing Birmingham customers are served remotely. The only Islamic banking branch in the city is HBZ Sirat's at 8 Harborne Road, Edgbaston.
Do I pay stamp duty on a Home Purchase Plan in Birmingham?
Yes, once, on the full purchase price, with the same thresholds as a conventional purchase. A first-time buyer pays nothing up to £300,000, which covers the average Birmingham house, semi or flat. A mover pays 2% on the portion between £125,001 and £250,000, about £2,185 on the £234,257 average. The later transfer of the bank's share to you is relieved from a second charge.
What would a halal mortgage cost per month on an average Birmingham house?
About £1,171 a month for a 20% deposit buyer financing £187,406 over 25 years on Gatehouse's two-year fixed rental rate of 5.68%, as published on 7 September 2026, before fees and insurance. With a 5% deposit and £222,544 of finance, Gatehouse's 95% product at 6.78% gives about £1,542 and Offa's at 7.45% about £1,637. After the fixed period the rate reverts to the provider's variable rate.
Compare providers in your state
See side-by-side comparisons of Shariah-compliant products, or let our matcher recommend the best options for your situation.
Can I get a halal mortgage on a Birmingham flat?
Yes, with caveats. The average Birmingham flat cost £144,814 in July 2026, which falls below Gatehouse's £75,000 minimum finance unless you put down roughly half the price, so StrideUp (minimum finance £50,000, 20% deposit on new build flats) or Offa (minimum finance £60,000) may fit better. StrideUp excludes freehold flats and large high-rise ex-local-authority blocks, and requires at least 40 years left on the lease at the end of the plan.
