An empirical inquiry into marketing Islamic mortgages in the UK

Abstract

Purpose This paper aims to explore public perceptions on marketing‐related issues of Islamic mortgages, which can help to identify the contents of the best marketing strategies for financial institutions wishing to promote Islamic mortgages among the Muslim community in the UK. In doing so, the access issues of the Islamic mortgages and how to effectively raise awareness among the Muslim community is discussed. The paper also aims to discuss the integration of the Islamic mortgage and to investigate the importance of staff confidence and the acceptability of promoting the Islamic mortgage by a non‐Muslim sales person. Furthermore, the role of religion, the Muslim households' consumer preferences and the prospect of Islamic mortgage providers' cross‐selling Islamic mortgage products to the Muslim customers are also discussed. Design/methodology/approach The principal method used to gather primary data is a questionnaire survey conducted with Muslim households in East London. From a total of 350 questionnaires distributed, 270 were returned, of which 250 were fully completed, thereby yielding a response rate of about 77 per cent. Findings The findings indicate that wider social factors and lifestyle choices may be increasing the demand for Islamic mortgages. The paper also argues that there is scope in the UK to expand the market for Islamic products and services to non‐Muslims as well if effective and sound marketing strategies are implemented. Research limitations/implications The sample size can be extended to have more reliable results. In addition, future research should consider other geographical locations in the UK to provide diversity in terms of participants. Practical implications The findings of the research can provide valuable information for the Islamic mortgage market in the UK but also render information for Islamic finance service providers in shaping their marketing strategy in relation to Islamic mortgages. Originality/value The paper utilises primary data from a particular case, which provides valuable findings in relation to participants' perceptions on Islamic mortgage and its marketing‐related issues. It also provides the elements of an effective marketing strategy for the marketing of Islamic mortgages in the UK. Therefore, in addition to being an academic paper appealing to academic inquiry, it has practical implications for the industry as well.

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