HSBC scraps Sharia-compliant mortgages

HSBC Interior Alternate 450

HSBC has stopped offering Sharia-compliant mortgage products following a strategic review of the bank’s businesses, according to The Times.

According to the paper, HSBC is scrapping Islamic loans and bank accounts for personal customers in Britain and several other countries, including the United Arab Emirates, Bahrain and Bangladesh.

A spokesman says: “Sharia mortgages are a very small business line for us in the UK. This is part of a strategic review of all our businesses.”

HSBC began offering Sharia-compliant home loans in 2003. The products account for 21,000 of HSBC’s 16 million bank accounts in the UK and £350m of mortgages out of HSBC’s book of £70bn.