This fatwa claims that engaging in Islamically invalid financial transactions is permissible. It exploits a loophole to allow for riba, a practice strictly prohibited in Islam. The fatwa misrepresents Imam Abu Hanifah’s RH position on accepting riba from disbelievers during war time (dar al-harb). Numerous flaws exist in this argument. Shaykh Muhammad Said Ramadan al-Bouti refuted this flawed reasoning that attempts to justify Muslims being allowed to participate in mortgages (long-term debt death grips).

Shaykh Muhammad Said Ramadan al-Bouti addressed the issue of these misguided fatwas that allow Muslims to engage in borrowing with interest, stating:

“The occasional fatwa that comes to us from Europe, wherein one asks, ‘I desire to purchase an apartment but lack the necessary funds, my current dwelling is small, and I wish to expand. However, I can only acquire a loan with interest. Could you advise us on the permissibility, according to the Hanafi school of thought, of taking a loan with interest?’

I seek refuge in Allah, I seek refuge in Allah. What is the origin of this notion and from whence does it emanate? Observe, my dear brethren, how an issue rooted in Islamic jurisprudence is amplified and distorted to introduce an unfounded gap within Islamic law. In the view of Hanafi scholars, if the Muslims are engaged in warfare against a hostile state, they are categorized as ‘Harbiyeen’. This classification does not apply outside a state of war, unlike our circumstance in Europe. Upon the outbreak of hostilities between us and them, each instance of ‘Harbiyeen’ seizing our assets / property deems them entitled to such possessions. Conversely, our acquisition of their wealth / property in similar fashion is considered legitimate.

Two prerequisites must be met for the label ‘Harbiyeen’ to be applicable. Firstly, there must exist a genuine state of war between the parties, and secondly, you take , not give interest. I beseech you to scrutinize the teachings of Imam Abu Hanifa (may Allah have mercy upon him) and contrast them with the assertions made by these individuals. Does the opinion of Abu Hanifa (may Allah have mercy upon him) now render riba (interest) permissible in our interactions with Europe and America?

May Allah fight those who oppress the Muslim community. Did Abu Hanifa (may Allah have mercy upon him) genuinely advocate such a stance? Does a genuine state of war exist between you and a European nation? If so, the position articulated by Abu Hanifa (may Allah have mercy upon him) concerning riba (interest) reinforces the validity of these stipulations. Yet, the current reality diverges markedly, for it is the Muslim community that finds itself burdened with interest-laden loans.”

If you are a citizen of the UK, USA, Europe, etc., and are raising your family there, it is evident that you do not believe you are at war with them. Therefore, please refrain from employing fiqh/jurisprudential mental gymnastics to attempt to justify obtaining a mortgage with interest.