Modelling the prospects for Islamic Home Finance in the UK from the perspective of Independent Mortgage Brokers

  • Tanveer Ahmed

    Student thesis: Doctoral ThesisDoctor of Philosophy

    Abstract

    In the past, a number of studies have attempted to assess the prospects for Islamic home finance in the UK. However, most of the research has been limited to one-sided views of Islamic scholars and Muslim participants, and lacked focus on non-Muslim counterparts and industry experts. Additionally, most of the studies are now out of date due to developments in the financial environment. Furthermore, previous research followed only basic survey approaches and first-generational statistical procedures without the support of a sound conceptual framework, thereby lacking rigorousness in research. This scenario presents a need to introduce an up-to-date conceptual framework validated by a much-ignored segment: industry experts (i.e.mortgage brokers) from both Muslim and non-Muslim backgrounds.

    Consequently, this study developed a conceptual framework to assess the prospects for Islamic home finance in the UK from the perspective of Muslim and non-Muslim independent mortgage brokers. To test the research framework empirically, data was collected from a sample of 144 mortgage brokers between April 2019 and October 2019 via online (using Qualtrics) and in-person surveys. The data was analysed using a partial least squares structural equation modelling (PLS-SEM) approach to examine the hypothesised relationships among the predicting constructs – extendibility, accessibility, affordability, authenticity – and the target construct prospects (for Islamic home finance in the UK). The path analysis revealed that accessibility had a significant effect on the prospects, whereas the impact of affordability on the prospects was found to be insignificant. In contrast, authenticity had the strongest direct effect on the prospects for Islamic home finance in the UK. The mediation analysis showed a significant indirect effect of extendibility on the prospects for Islamic home financing via the accessibility construct.

    The group comparison analysis revealed no statistically significant difference among all hypothesised path coefficients for the Muslim vs. non-Muslim and experienced vs. less experienced mortgage brokers’ data groups. Results of the post-hoc importance–performance matrix analysis (IPMA) showed authenticity as the most relevant factor regarding the prospects for Islamic home financing in the UK. On the other hand, affordability (cost-related) attributes of Islamic home finance were found to be performing reasonably well but considered relatively unimportant to the mortgage brokers in the current financial conditions. These results provide new and extensive insight into the field of Islamic home financing and expand the literature in this emergent field.
    Date of AwardJul 2021
    Original languageEnglish
    Awarding Institution
    • Coventry University
    SupervisorKabir Kabir (Supervisor), Umut Turksen (Supervisor) & Aqsa Aziz (Supervisor)

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