A landmark £308 million securitisation by StrideUp has reconnected Islamic home finance with the mainstream capital markets for the first time in seven years.

The London-based Sharia-compliant finance provider has completed its debut public securitisation, ‘Meridian Funding 2025-1’, backed by a portfolio of halal Home Purchase Plans (HPPs).

The transaction is the first Sharia-compliant residential mortgage-backed security to be issued since 2018 and represents a major step forward for the UK’s Islamic finance sector.

For many Muslim households, the prohibition on interest has long limited access to conventional mortgage products, often leaving families renting or living with relatives while saving to buy outright. StrideUp’s model offers a Sharia-compliant alternative, allowing customers to jointly own their homes with the company, paying rent while gradually increasing their share of equity until full ownership is achieved.

Sakeeb Zaman (pictured), chief executive of StrideUp, described the transaction as “a game-changing moment” for both the business and the wider community. He said: “This game-changing moment has only been possible because of a generational shift among young Muslims, who are extremely active in exploring the home ownership options available to them, with a strong conviction that they shouldn’t have to compromise their faith.”

The £308 million deal has been backed by institutional investors through the purchase of certificates linked to StrideUp’s halal home finance portfolio, providing the firm with fresh capital to fund future growth.

“If it wasn’t for this groundswell of desire from UK Muslims, the market simply wouldn’t exist – and it is creating opportunities for all,” Zaman added.

Around four million Muslims live in the UK, representing about 7% of the population. Despite this, Islamic finance remains a relatively niche segment of the mortgage market. StrideUp argues that brokers and financial institutions who engage with this demographic stand to gain a competitive advantage by offering products that align with religious principles.

Zaman said: “We are proud to be re-energising the Islamic finance sector with this deal. The feedback we have had from across the financial services sector highlights our contribution in broadening financial inclusion in the UK. We have a strong roadmap of products that extend well beyond home ownership to capture this opportunity.”