On 14 September 2026 the lowest published halal mortgage rate for a UK resident is Gatehouse Bank's 5.53% five-year fixed Green Home Purchase Plan at 65% finance to value, or 5.63% for the non-green version. At 80% finance to value Gatehouse publishes 5.68% fixed for two years against 6.54% at StrideUp and 6.65% at Offa. With a 5% deposit Gatehouse charges 6.78% and Offa 7.45%; StrideUp stops at 90%. Al Rayan Bank now quotes its home finance only to Premier customers, Nomo is closed to UK residents, and Pfida has no rate at all. The halal home financing hub lists each provider; this page compares the numbers.
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The comparison table: six providers on one page
| Provider | 2 year fixed at 80% FTV | 5 year fixed at 80% FTV | Maximum FTV | Product fee | Who it serves |
|---|---|---|---|---|---|
| Gatehouse Bank | 5.68% | 5.76% | 95% (houses, UK residents) | £499 up to 80% FTV, £999 above; £149 application fee | UK residents, expats, international; England and Wales; finance £75,000 to £5m |
| StrideUp | 6.54% | 6.64% | 90% | £1,249 | UK residents of two years or more; England only; finance £50,000 to £1.5m |
| Offa | 6.65% | 6.75% | 95% | £499 up to 80% FTV, £999 at 90% and 95% | UK residents and British expats; England and Wales; finance from £60,000 |
| Nomo (BLME) | 5.89% at 75% FTV | 6.19% at 75% FTV | 75% | £1,999 application fee plus £1,000 bank lawyer fee | Non-UK residents only; England, Scotland and Wales; £100,000 to £5m |
| Al Rayan Bank | Negotiable, not published | Variable only | Negotiable | Admin fee by negotiation, typically 1% to 1.5% | Premier customers from Qatar, Saudi Arabia, Kuwait, Bahrain and Oman; home finance of £500,000 or more |
| Pfida | No rate: rent set per property | No fixed periods | Not applicable | Not published | UK savers who join the community waiting list; not FCA regulated as home finance |
Every figure comes from the provider's own product page or rate sheet fetched on 14 September 2026. Gatehouse labels its current UK resident range "Limited Edition" and prices Green products (EPC A or B) 0.10% below the standard rate. StrideUp's rates come from the rate table embedded in its online calculator, which also sets its product fee at £1,249. Nomo's October 2026 residential factsheet states that Nomo accounts are not available to UK residents.
What a rental rate is and why it is not an APR
Every provider in the table except Al Rayan and Nomo uses a diminishing co-ownership structure: you and the provider buy the property together, you pay rent on the share you do not yet own, and each monthly payment also buys a slice of the provider's share. The percentage quoted is the rental rate applied to the provider's outstanding share. Offa's FAQ puts it plainly: a percentage is a proportion, not an interest rate, and benchmarking against the wider market is permitted so that customers can compare. Al Rayan and Nomo instead use Commodity Murabaha, where the bank sells you commodities on deferred payment at a pre-agreed profit and the quoted percentage is the profit rate on that sale.
None of this produces an APR in the Consumer Credit Act sense, because there is no loan. Nomo is the exception in publishing an APRC alongside its profit rate (6.9% against a 5.89% two-year fixed), which it says is for comparison with mortgages. For everyone else, compare the rental rate, the product fee, the follow-on rate and the early redemption charge separately, exactly as you would compare the headline rate, fee, standard variable rate and early repayment charge on a conventional mortgage. Our cost comparison of halal and conventional mortgages does that side by side.
Rates by deposit band for a UK resident buyer
| Deposit | Gatehouse (2 year / 5 year) | StrideUp (2 year / 5 year) | Offa (2 year / 5 year / discounted variable) |
|---|---|---|---|
| 35% or more (65% FTV) | 5.68% / 5.63% | 6.49% / 6.54% | 6.59% / 6.65% / 6.44% |
| 20% (80% FTV) | 5.68% / 5.76% | 6.54% / 6.64% | 6.65% / 6.75% / 6.55% |
| 15% (85% FTV) | No 85% band; 90% product applies | 7.24% / 7.34% | No 85% band; 90% product applies |
| 10% (90% FTV) | 6.48% / 6.46% | 7.34% / 7.44% | 7.35% / 7.45% / not offered |
| 5% (95% FTV) | 6.78% / 6.76% | Not offered | 7.45% / 7.55% / not offered |
Gatehouse is cheapest in every band where it competes, by between 0.8 and 1.0 percentage points. The gap matters more than it looks because the cheaper rate also comes with a smaller fee below 80% FTV. The counterweight is eligibility: Gatehouse needs a minimum income of £15,000, or £20,000 above 80% FTV, considers up to six times income, and caps 95% finance at £600,000 and 90% at £750,000. Offa advertises up to seven times income and a Family Assist option that adds relatives to the affordability calculation without putting them on the deeds, and StrideUp accepts self-employed income from one year of accounts and 100% gifted deposits. A buyer who fails Gatehouse's affordability test is not choosing between 5.68% and 6.65%; they are choosing between 6.65% and renting.
The fees that sit on top of the rate
- Gatehouse charges a £149 application fee on all UK resident purchase products, a £499 product fee up to 80% FTV and £999 at 90% and 95%, deducted from the finance amount on completion, plus valuation and legal fees and an account settlement fee at the end; its refinance range currently carries no application or product fee and a free valuation.
- StrideUp charges a single £1,249 product fee on its Home Purchase Plan, payable at offer acceptance and refundable into the balance if you add it to the plan, plus its own legal fees of £385 plus VAT and disbursements (reduced by £250 if you use a panel solicitor), and a valuation fee on a published scale.
- Offa charges £499 on its 65% and 80% products and £999 on 90% and 95%, with early buyout charges that vary by product and have been approved by its Shariah certifier, Amanah Advisors.
- Nomo's application fee is £1,999 on its standard range (covering the first valuation), with a further £1,000 bank lawyer fee after offer, a £240 account settlement fee plus legal costs at the end, and fees payable upfront rather than added to the finance.
- Al Rayan's Premier Home Finance admin fee is by negotiation, typically between 1% and 1.5% of the finance, with no early settlement fee and a £400 contribution to the bank's legal costs if you use a panel solicitor.
Follow-on rates, rent reviews and early redemption
The fixed period ends and the rate changes. Gatehouse reverts to its Standard Variable Rate, published at 7.25% on 14 September 2026. StrideUp's calculator builds its variable rate from a 3.75% base plus a 4.24% margin, which is 7.99% on the day. Nomo's follow-on rate is 6.99%, applied through a new Murabaha transaction renewed monthly. Offa's product page gives its discounted variable rates (6.44% and 6.55%) but does not publish the rate the fixed products revert to, so ask for the reversion rate in writing before you sign. Al Rayan reviews its Murabaha profit rate quarterly in line with market conditions.
Early redemption is the other cost hidden behind the headline. Gatehouse allows Additional Acquisition Payments of up to 10% of the outstanding balance in each anniversary year during the fixed period without charge (minimum £2,000); above that, its two-year products charge 2% in year one and 1% in year two, and its five-year products charge 3% in years one and two, 2% in years three and four and 1% in year five. Nomo charges no early redemption fee as such but requires you to pay the profit for the remainder of the fixed period, which on a five-year fix repaid at month 12 means 48 months of profit. StrideUp and Offa publish their charges in tariff documents and product terms rather than on the rate pages; read them before you compare on rate alone.
A worked monthly payment: £300,000 purchase with a 20% deposit
Take a £300,000 house in England, a £60,000 deposit and £240,000 of finance over 25 years on an acquisition and rent basis. Using the standard amortisation arithmetic that every provider's calculator applies, Gatehouse's 5.68% two-year fixed produces roughly £1,500 a month during the fixed period. StrideUp's 6.54% produces roughly £1,627, and Offa's 6.65% roughly £1,643. If the Gatehouse plan reverted to the 7.25% SVR with the same balance and term, the payment would rise to roughly £1,735; at StrideUp's 7.99% variable it would be roughly £1,851.
These are our calculations from the published rates, not provider quotes, and each provider's own calculator may differ by a few pounds because of how rent is apportioned in the first month and whether the product fee is deducted from the finance. The providers' own calculators exclude valuation, legal and settlement fees, buildings insurance and the rent review at the end of the fixed period. Run your own figures on the HalalWallet mortgage calculator and then confirm with the provider's Decision in Principle, which Gatehouse says takes around ten minutes online and which StrideUp says is free and does not affect your credit score.
Who is excluded, and by whom
Geography first. Gatehouse, Offa and Al Rayan finance property in England and Wales only. StrideUp's eligibility page says properties must be in England. Nomo extends to Scotland, but only for its non-UK-resident customers. Nobody in this table finances a home in Northern Ireland. A Scottish resident buying in Scotland has no provider on this page.
Property type next. StrideUp requires a 15% deposit on new-build houses and 20% on new-build flats, does not accept freehold flats, large high-rise ex-local-authority blocks, Right to Buy or Shared Ownership, and needs a minimum property value of £75,000 with a £50,000 minimum finance amount. Gatehouse lends up to 75% on new-build flats against 95% on houses, needs at least £75,000 of finance, and warns that leasehold properties may fall under the Building Safety Act 2022. Offa needs a minimum property value of £80,000 and minimum finance of £60,000. Nomo's minimum property value is £150,000 outside London and £350,000 inside it.
Residency last. Gatehouse requires six months of UK residency for its UK resident range and prices expats and international residents higher (6.74% and 6.94% respectively for a two-year fix at 65% FTV) with larger fees. StrideUp wants two years of UK residence from at least one applicant. Al Rayan's Premier Home Finance is described as available to applicants from Qatar, Saudi Arabia, Kuwait, Bahrain and Oman, and its Premier Banking page sets the entry point at home finance of £500,000 or more. Our guide to deposits and affordability for UK Home Purchase Plans goes through each provider's income rules in detail.
These rates will change: where to re-check
Every rate above was read on 14 September 2026. Gatehouse's Limited Edition products carry product codes (GHFU1738 to HFU1743 across the current UK resident range) and are replaced without notice; its refinance products changed in 2026 to remove application and product fees entirely. StrideUp and Offa both state that rates are subject to change or withdrawal. Re-check the Gatehouse home finance products page, StrideUp's rates calculator, Offa's HPP products page and Nomo's product factsheet on the day you apply, and compare the current numbers against each other on the day rather than trusting any article, including this one, for more than a few weeks.
The decision: which provider for which deposit
With a 35% deposit or more, Gatehouse at 5.63% fixed for five years (5.53% on an A or B rated home) is the cheapest halal home finance published in Britain and nobody else is within 0.8 points; apply there first and treat StrideUp or Offa as the fallback if affordability fails. With a 20% deposit the answer is the same at 5.68%, and the £499 fee is the lowest on the page. With a 10% deposit Gatehouse's 6.48% still beats StrideUp's 7.34% and Offa's 7.35%, but income floors and property rules start to bite, so get a Decision in Principle from Gatehouse and StrideUp on the same day.
With a 5% deposit you have two choices: Gatehouse at 6.78% with a £600,000 cap and a £20,000 income floor, or Offa at 7.45% with seven times income and Family Assist. The buyer who needs the income multiple goes to Offa and accepts the higher rent. If you cannot pass any of these tests, or you refuse any structure that resembles a committed repayment schedule, Pfida's community model is the remaining route, with a waiting list instead of a rate. Gulf residents buying a UK home should price Nomo's 5.89% two-year fixed against Gatehouse's international range before talking to Al Rayan Premier. Facts checked against gatehousebank.com, strideup.co, offa.co.uk, nomobank.com, alrayanbank.co.uk, pfida.com on 14 September 2026.
Frequently asked questions
What is the cheapest halal mortgage rate in the UK right now?
Gatehouse Bank's 5.53% Green five-year fixed at 65% finance to value, or 5.63% for the standard product, published on 14 September 2026. Both need a 35% deposit and a property in England or Wales. At 80% finance to value Gatehouse's 5.68% two-year fixed is the lowest, against 6.54% at StrideUp and 6.65% at Offa. Rates change without notice, so re-check the provider's page before applying.
Why do halal mortgages quote a percentage if there is no interest?
The percentage is a rental rate on the share of the property the provider owns, or a profit rate on a commodity sale, not interest on a loan. Providers quote it as a percentage so that buyers can compare it with conventional mortgages, and Shariah permits benchmarking against a recognised market rate. The contract is co-ownership or sale, and that structure, not the number, is what makes it permissible.
What happens to my rate after the fixed period ends?
You move to the provider's variable or follow-on rate unless you take a new fixed product. On 14 September 2026 that is 7.25% at Gatehouse, 7.99% implied by StrideUp's calculator and 6.99% at Nomo. Offa does not publish its reversion rate on its product page. The jump from a 5.68% fix to 7.25% adds roughly £235 a month on £240,000 over 25 years, so diarise the end date.
Can I get a halal mortgage with a 5% deposit?
Yes, from two providers. Gatehouse offers 95% finance to value on houses for UK residents at 6.78% fixed for two years, capped at £600,000 of finance and requiring income of at least £20,000. Offa offers 95% at 7.45% for two years with up to seven times income. StrideUp's minimum deposit is 10%, rising to 15% for new-build houses and 20% for new-build flats.
Does Al Rayan Bank still offer halal mortgages?
Only through Premier Banking. Al Rayan's Premier Home Finance page lists the rental rate and finance to value as negotiable, the structure as Commodity Murabaha with a variable rate reviewed quarterly, and the admin fee as typically 1% to 1.5%. The FAQ says it is available to applicants from Qatar, Saudi Arabia, Kuwait, Bahrain and Oman, and Premier status starts at home finance of £500,000. It is not a mainstream UK retail product in 2026.
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.
Are halal mortgage providers regulated and is my money protected?
Gatehouse, Al Rayan and BLME (Nomo) are PRA-authorised banks, and Home Purchase Plans are FCA-regulated products at Gatehouse, StrideUp (FCA 785299) and Offa (FCA 1000573). FSCS deposit protection covers savings, not home finance, so regulation matters for conduct and complaints rather than compensation. Pfida states that none of its products are FCA regulated and that customers are not covered by the Financial Ombudsman or the FSCS.
