ISLAMIC MORTGAGE

Islamic Mortgage

Abstract

The proposed research is based on the Islamic mortgage in UK. The UK Islamic mortgage market will grow at an average of 47 per cent per year to reach GBP1.4 billion in gross advances by 2009, as more mainstream lenders realize its untapped potential. The removal of double Stamp Duty which previously made Islamic mortgages too expensive has in part been the catalyst for more mainstream lenders such as HSBC and Lloyds TSB to become involved. The entrance of HSBC and Lloyds TSB marks a crucial milestone in the development of the Islamic mortgage market," says Ms Imberg. The fact that mainstream lenders are now involved shows that there is widespread belief that this market is potentially very substantial. In addition, mainstream lenders' offering of Islamic mortgages is just the beginning of their long term aims to offer customers an entire core suite of Sharia-compliant products, including current accounts, investment products, etc.

Table of Contents

Abstract2

Section 1 - Introduction4

Relevance of the Proposed Research to Business Research4

Key Research Studies and Relevant Bodies of Theory6

Research Questions to be Investigated8

Section 2 - Account of the Method9

Research Design9

Data Collection9

Data Analysis9

How Research Design allows you to Answer the Research Questions10

Ethical Considerations10

Project Management of the Process10

Section 3 - Discussion12

How the Methodology Addresses the Research Question12

Contribution to Knowledge and Practice Base12

Any Drawbacks13

Conclusions14

References15

Section 1 - Introduction

Relevance of the Proposed Research to Business Research

Al-Ajmi et al. (2009) examine the choice of conventional and Islamic banks in Bahrain. They included three types of bank clients in study: those who deal with conventional banks, those who deal with Islamic banks and those who use both kinds of bank. (Al-Ajmi et al., 2009, 45). Zainuddin et al. (2004) surveyed Malaysian bank customers to demonstrate the different perceptions of users and non-users of Islamic banking services. They concluded that, in general, Islamic bank users were over 30, with relatively stable family incomes whereas most non-users were single, aged less than 30 year and with low incomes. One important finding in this study was that the decision-making processes of Islamic banks' users were affected by friends and relatives, as well as religious factors. The feeling of secure, safe and knowledge are the most significant reasons for bank selection (Gerrard and Cunningham, 2001, 74).

Erol and El-Bdour (1989) investigated the choice criteria for Islamic banking in Jordan. This study showed that banks reputation and image, confidentiality, fast and proficient services are main factors that influenced the selection decision of bank customers in both conventional and Islamic bank. Study also found that customers were aware of Islamic banking products but religious factor did not seem crucial factor in bank selection. This research is consistent with the results of (Haron et al., 1994, 188) they also found that fast and efficient services, friendliness of bank with customers, confidentiality of bank are essential causes moving towards banking selection. Findings also indicated that to grasp the attention of customers banks did not need to rely only on religious factors they should also concentrate on speedy and quality ...