Is it permissible for me to obtain BTL finance from an Islamic bank to purchase an investment property? I’ll be required to have conventional home insurance for this, and as the investment is not a necessity as such, I wasn’t sure if i am allowed to get this finance.
Bismlillah,
It is permissible to avail of buy-to-let financing from an Islamic bank.
The insurance requirement is a secondary matter further down the chain and process in which you don’t have an option. Contemporary scholars advise that one should seek a Shariah compliant insurance (Takaful) policy. However, if that is not available, one will be excused for acquiring a conventional policy.
Allah knows best
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