Halal Mortgage London (2026): Deposits, Providers and What It Costs

A halal mortgage in London in 2026 means a Home Purchase Plan from one of four providers that finance property in the capital: Gatehouse Bank, StrideUp, Offa and, for those prepared to wait, Pfida. Gatehouse and Offa will fund up to 95% of the price on a standard house, so a 5% deposit is the floor; StrideUp asks for 10%. Al Rayan Bank now only writes new home finance through its Premier desk for Gulf applicants, and Nomo does not serve UK residents at all. The published Gatehouse rental rate for a 95% plan fixed for two years is 6.78% with a £999 product fee, which is the clearest price signal in the market today. The UK home financing hub holds the full provider list.

Which providers actually finance London property in 2026

London is the easiest part of England to finance on a halal basis because every active provider covers England and Wales, and three of them have offices in or near the capital. Gatehouse Bank is a PRA-authorised bank that finances houses and flats across England and Wales, including new builds, with teams in London, Birmingham, Milton Keynes and Wilmslow. StrideUp is an FCA-regulated finance house (firm reference 785299) at Old Bailey that finances property in England only. Offa runs its FCA-regulated Home Purchase Plan from Solihull for properties in England and Wales. Pfida is a London company whose OwnTogether product is funded by its own saver community and is reached through a points-based waiting list rather than a conventional application.

Two names that appear in older London guides no longer apply to most readers. Al Rayan Bank describes itself as a specialist in Structured Real Estate and Premier Banking, and its only new residential product is Premier Home Finance, a commodity murabaha structure with negotiable rental rate and finance-to-value, open to applicants from Qatar, Saudi Arabia, Kuwait, Bahrain and Oman. Existing Al Rayan HPP customers are still served, but a Londoner on a salary cannot walk in and apply. Nomo, the digital brand of BLME, finances UK property for its account holders, but its site states that Nomo accounts are not currently available to UK residents. The HBZ Sirat window of Habib Bank Zurich has branches in London and has historically written property finance; its terms are not published online, so treat it as quote-only and ask the branch directly.

How much deposit you need for a London flat or house

The deposit floor depends on the property type as much as the provider. Gatehouse will finance houses, including new build houses, up to 95% of value, but new build flats only up to 75%. Its published tiers for UK residents are 95% finance-to-value up to £600,000 of finance, 90% up to £750,000, 80% up to £2m, 75% up to £3m and 70% up to £5m. StrideUp asks for 10% on a standard house or flat, 15% on a new build house and 20% on a new build flat, with finance between £50,000 and £1.5m. Offa publishes a single 5% minimum deposit, a minimum property value of £80,000 and minimum finance of £60,000. None of these providers currently accepts freehold flats or shared ownership leases on the standard plan, and StrideUp lists Right to Buy and large ex-local-authority high-rises as exclusions.

Translate those percentages into London prices and the picture becomes concrete. The figures below are arithmetic applied to the published maximum finance-to-value limits, not quotes, and every provider will also run a full affordability and credit assessment before confirming anything.

Affordability: income multiples that London salaries run into

Deposit is rarely the binding constraint in London; income is. Gatehouse states it can consider up to six times income depending on income, deposit size and overall affordability, while its online Decision in Principle offers a maximum of 4.5 times, with anything higher discussed with an adviser. Offa advertises up to seven times income and a Family Assist feature that lets relatives join the plan for affordability without owning the property. StrideUp does not publish a multiple but accepts up to four applicants, counts self-employed income from one year, second jobs, contractor income and certain benefits, and takes a practical view of past arrears. Gatehouse requires minimum earnings of £15,000, or £20,000 for finance above 80% of value.

• A £475,000 Gatehouse plan at the 4.5 times online limit needs roughly £105,600 of household income, and at the six times adviser ceiling roughly £79,200.
• The same £475,000 with Offa at seven times needs roughly £67,900, before Family Assist income is added.
• StrideUp's four-applicant rule lets siblings or parents who will live in the property pool income, which suits multi-generational London households.
• Gatehouse accepts gifted deposits from family, extended family and non-family members, and StrideUp accepts 100% gifted deposits with a signed gift declaration.
• All three run credit checks; StrideUp and Gatehouse both describe their Decision in Principle as not affecting your credit score.

What a London Home Purchase Plan costs: published rates and fees

Gatehouse is the only provider publishing a full rate card without a login. For UK residents buying a home, its purchase products on 8 September 2026 were: 95% finance-to-value fixed for two years at 6.78% and for five years at 6.76%; 90% at 6.48% (two years) and 6.46% (five years); 80% at 5.68% (two years) and 5.76% (five years); 65% at 5.68% (two years) and 5.63% (five years). The 90% and 95% products carry a £149 application fee and a £999 product fee; the 65% and 80% products carry £149 and £499. Green versions for EPC A or B homes are 0.10% lower. All revert to the Standard Variable Rate, currently 7.25%. Refinance products carry no application or product fee and include a free valuation.

StrideUp publishes a £1,249 one-off product fee on its two- and five-year fixed plans, but its live rate table only renders after you enter a property value and deposit, so treat the rental rate as quote-only until you run its calculator or receive a Decision in Principle. Offa states that its rates compete with conventional banks and that early buyout charges depend on the product, but publishes no figures; ask for the Key Facts Illustration. Pfida sets rent by property size, location, its cost of capital and the share you already own, and applies a rental discount in any month you buy extra equity. Al Rayan's Premier admin fee is typically between 1% and 1.5% by negotiation, with no early settlement fee.

Early settlement works the same way across the regulated plans. Gatehouse charges an Early Redemption Charge if you redeem or make lump sum payments above 10% of the outstanding balance per anniversary year during a fixed period, waives it within four months of the fixed period ending if you switch to another Gatehouse product, and charges an account settlement fee at the end. Because the bank commits to selling its share at the original price it paid, any rise in the value of your London flat is yours alone, which matters more in the capital than anywhere else.

Stamp duty on a Home Purchase Plan in London

Stamp Duty Land Tax is charged once, on you, at the normal residential rates, even though the bank legally acquires the property first. HMRC's Stamp Duty Land Tax Manual section SDLTM28000 sets out the alternative property finance relief under Finance Act 2003 sections 71A and 73, which treats the bank's acquisition as exempt and charges the customer as if they had bought directly. Our explainer on why Home Purchase Plans are not taxed twice covers the mechanics. The rates that bite in London are the standard bands published on gov.uk: nothing on the first £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% to £1.5m and 12% above.

First-time buyers pay nothing up to £300,000 and 5% on the portion from £300,001 to £500,000, but lose the relief entirely above £500,000, which excludes a large share of London purchases. On a £500,000 flat a first-time buyer therefore pays £10,000 (gov.uk's own worked example), while a mover pays £15,000. On a £700,000 house there is no first-time relief and the bill is £25,000. Anyone buying who already owns another home anywhere in the world pays a further 5% on top, and non-UK residents pay a 2% surcharge. Al Rayan's Premier page confirms that no stamp duty arises on a refinance from a conventional mortgage or another Islamic provider.

Shared ownership and Help to Buy: why they rarely mix with halal finance

Shared ownership is the most common route into London home ownership for people on moderate incomes, and it is the hardest to make halal. Under the scheme described on gov.uk you buy a share between 10% and 75% of the home, pay rent on the rest to a housing association, and all shared ownership homes are leasehold. StrideUp expressly excludes shared ownership, and the Gatehouse and Offa criteria do not list it as accepted. The structural problem is that a Home Purchase Plan already splits the property between you and the provider, and layering a housing association's share on top creates a three-way lease the providers have not built products for. Our piece on shared ownership and Islamic finance explains the few workarounds.

Help to Buy is no longer a live question in London. Gov.uk confirms you can no longer apply for a Help to Buy Equity Loan for properties in England; the equity loan remains open only in Wales. Existing Help to Buy owners who want to refinance into a Home Purchase Plan should note that the government equity loan charges interest from year six at 1.75%, rising annually with CPI plus 2%, so clearing it as part of a halal refinance removes an interest-bearing debt, and the Gatehouse refinance range lets lump sums of at least £2,000 be made for that purpose.

The process in London: timelines and conveyancing

Gatehouse quotes two to four weeks from application to Offer of finance and a further 12 to 16 weeks to legal completion, which is slower than a conventional London purchase because the bank instructs its own solicitor to work alongside yours. StrideUp states that most Decisions in Principle are reviewed the same day and that its 2025 average from full application to offer was just over two weeks. Offa says eligible applicants may receive a same-day decision and uses a single solicitor to represent both parties, chosen from its panel. Leasehold flats, which dominate inner London, add a check: Gatehouse flags the Building Safety Act 2022, StrideUp needs 40 years left on the lease at the end of the plan, and Al Rayan Premier requires 80 years remaining plus the finance term.

• Get a Decision in Principle from at least two providers before viewing, since the Gatehouse online limit (4.5 times income) and the Offa headline (seven times) can differ by more than £100,000 on the same salary.
• Ask each provider for its Key Facts Illustration showing the rental rate, the product fee, the Early Redemption Charge and the account settlement fee in pounds.
• Check the lease length and any cladding or Building Safety Act issues before paying for a valuation.
• Budget stamp duty separately, because fees and charges cannot be added to a Gatehouse finance amount.
• If the property is a new build flat, model the 75% (Gatehouse) or 80% (StrideUp) ceiling before you reserve.

Verdict: who should choose what in London

A first-time buyer with a 5% to 10% deposit on an existing flat under £600,000 should start with Gatehouse, because its 95% product is priced on a public rate card and the bank's FSCS-protected balance sheet makes it the safest counterparty; Offa is the alternative if income is the constraint and seven times or Family Assist is needed. A household with several earners, irregular income or a one-year self-employment record should look first at StrideUp, whose four-applicant and broad income rules fit London's multi-generational families. Buyers of new build flats face a 20% to 25% deposit everywhere and should compare the StrideUp 20% floor against Gatehouse's 75% cap before reserving. Anyone who objects to a committed payment schedule on principle, and can wait, should join Pfida's waiting list while saving. Use the matching tool to shortlist, then request Key Facts Illustrations from two providers. Facts checked against gatehousebank.com, strideup.co, offa.co.uk, pfida.com, alrayanbank.co.uk, nomobank.com, gov.uk on 8 September 2026.

Frequently asked questions

What is the minimum deposit for a halal mortgage in London?

Five per cent, on a standard house or existing flat, with Gatehouse Bank (where total finance stays within £600,000) or Offa. StrideUp requires 10% on standard property, 15% on a new build house and 20% on a new build flat. Gatehouse caps new build flats at 75% of value, so a 25% deposit. Every provider then applies its own affordability test, so the deposit floor is necessary but not sufficient.

Does Al Rayan Bank still offer a halal mortgage to Londoners?

Not for ordinary UK applicants. Al Rayan's only new residential product is Premier Home Finance, a commodity murabaha plan with negotiable rate and finance-to-value, which its site says is available to applicants from Qatar, Saudi Arabia, Kuwait, Bahrain and Oman. Existing Home Purchase Plan customers are still serviced. UK-resident Londoners should look at Gatehouse, StrideUp, Offa or Pfida instead.

How much does a Gatehouse Home Purchase Plan cost in 2026?

On 8 September 2026 Gatehouse published a 95% finance-to-value plan fixed for two years at 6.78% rental rate and for five years at 6.76%, with a £149 application fee and £999 product fee. At 80% finance-to-value the two-year rate was 5.68% and the product fee £499. All products revert to a Standard Variable Rate of 7.25%. Green versions for EPC A or B homes are 0.10% cheaper.

Do I pay stamp duty twice on a Home Purchase Plan?

No. HMRC's alternative property finance relief, set out in Finance Act 2003 sections 71A and 73 and explained at SDLTM28000, exempts the bank's acquisition and charges you once at the ordinary residential rates. A first-time buyer pays nothing up to £300,000 and 5% to £500,000; above £500,000 the standard bands apply, so a £700,000 London house costs £25,000 in stamp duty for any buyer.

Can I use a Home Purchase Plan with shared ownership in London?

Almost never. StrideUp excludes shared ownership outright, and Gatehouse and Offa do not list it as accepted property. Shared ownership homes are leasehold with a housing association holding part of the equity, which conflicts with the co-ownership structure of a Home Purchase Plan. If shared ownership is your only affordable route, read our dedicated guide on the limited options before committing.

How long does a halal mortgage take to complete in London?

Gatehouse quotes two to four weeks from application to offer and a further 12 to 16 weeks to completion. StrideUp reports a same-day Decision in Principle for most applicants and an average of just over two weeks from full application to offer in 2025. Offa may issue a same-day decision. Leasehold checks, Building Safety Act queries and the two-solicitor structure at Gatehouse are the usual causes of delay in the capital.