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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.

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.

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.

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.

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.

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.

The purpose of this paper is to understand consumers’ willingness to choose Islamic mortgage products as a way to help Islamic banks tap into the Islamic mortgage sector in Malaysia.

Using the Theory of Interpersonal Behaviour as a point of departure, this study proposes a framework that examines factors influencing consumers’ willingness to choose Islamic mortgage products. A total of 282 usable surveys are obtained from customers of Islamic banks and the data were analysed using partial least squares.

The results indicate that affect, social factors, and facilitating conditions influence willingness to choose Islamic mortgages. Besides these factors, the added factors, namely, perceived risk and perceived financial benefit, significantly influence consumers’ willingness to choose Islamic mortgages.

This study is confined to two public universities in Malaysia. Further testing of the proposed model across different population groups is necessary to determine the generalisability of this study’s findings. This study applies consumer factors such as affect, social factors, facilitating conditions, perceived risk and perceived financial benefit. Further testing on other factors is needed to expand the findings in this area.

The results could help bank managers make improved decisions about the factors which they need to effectively market Islamic mortgage products. This study provides insights and guidance for bank managers to manage Islamic mortgage products.

The main contribution of this paper is a proposed framework of consumers’ willingness to choose Islamic mortgage products which takes into account the key factors necessary to predict consumers’ demand.

The purpose of this study is to propose a theory of Islamic consumer behaviour to explain the factors that influence the Islamic mortgage industry. Although previous works have shown that conventional marketing theories were, to a certain extent, able to predict factors influencing halal marketing and Islamic mortgage, these theories fail to capture or accommodate the Islamic perspectives of consumer behaviour. Conventional marketing theories have also been found to be inadequate to explain the Islamic mortgage preference among consumers.

Drawing upon the Maqasid al-Shariah, this study develops an Maqasid al-Shariah index (MSI) and religious satisfaction (RS) for Islamic mortgage industry in Malaysia. These indexes are developed as the basis of the theory development in this setting. The model developed is later examined using survey data.

This study reveals that education and RS are instrumental in determining the Islamic home financing preference. In contrast, justice and welfare are insignificantly related to the Islamic home financing preference. Religious satisfaction, to a certain extent, plays role not only as a mediator but also as a moderator. We find that RS has a full mediation effect on the relationship between welfare and willingness to consider applying Islamic mortgage. We discover justice is moderated by RS. Education and welfare however are not moderated.

This study contributes to the development of an empirical Islamic framework in predicting consumers’ behaviour in an Islamic mortgage market using a Maqasid approach. This study is also pioneering in introducing two indexes, notably MSI and RS, and applying these indexes to Islamic home financing context.

The purpose of this paper is to explore the reasons behind customers' selection of Islamic mortgage in Sabah, Malaysia and present factor and cluster analyses to identify the importance of choice criteria for Islamic mortgage selection. The choice criteria among Sabahans are investigated along with their gender, age group, religion, monthly income, and ethnicity.

A total of 250 bank customers responded to a survey addressing the choice criteria for Islamic mortgage providers. It is important to address the criteria in order to make sure the service providers are able to come up with attractive package of Islamic home financing to their prospective customers. Of these, only 211 questionnaires are usable, which gives us a response rate of 84.4 percent. No extra efforts are conducted in order to increase the number of respondents. Non‐probability, convenience sampling is implemented. This paper uses a quantitative study similar to what employed by Lymperopoulos et al. and by Devlin. Frequencies, descriptive, factor and cluster analyses are used to analyze the data.

A cluster analysis indicates that bank customers can be divided into three clusters. Members of cluster 1 reported a tendency to select mortgage bank on the basis of “service provisions” while the members of cluster 2 reported a tendency to select mortgage bank on the basis of “elements of Shariah and Islamic principles.” While those of members in the cluster 3, almost entirely had lower mean scores as compared to other clusters. Nevertheless, the members of this cluster reported a greatest tendency to choose Islamic mortgage provider on the basis of “pricing.”

The paper has addressed three limitations that provide opportunities for other researchers to explore them in depth in the future in the similar field of Islamic home financing. The limitations are presented in the conclusion's part.

With regard to implications, this paper offers inputs for management decision among Islamic mortgage providers (i.e. Islamic banking institutions such as full‐fledged Islamic banks, conventional banks with Islamic windows and conventional banks with Islamic subsidiaries). In addition, this paper adds to the literature in the area of home loans/financing.

This paper offers the choice criteria for Islamic mortgage providers provides useful information on the Islamic mortgage providers' selection among Sabahans. This paper indeed provides useful information on the main choice criteria that affect why Sabahan choose Islamic mortgage providers.

The purpose of this paper is to present an analysis of current practices of Islamic mortgages in the light of the principles of Islamic financial system, to document divergences – if any. A subsidiary goal is to develop an Islamic Mortgage Model (IMM) based on Musharakah principles.

The author documents theoretical underpinnings of risk-return sharing from the Shari’ah perspective. A comparative study of conventional and Islamic mortgages is completed; existing practice of Islamic mortgages analyzed in the light of Musharakah principles and divergences identified. IMM is developed after taking divergences and Musharakah principles into considerations. A housing case is used to highlight differences (in financial terms) under multiple methods and scenarios.

Study documents multiple divergences from Musharakah principles in the existing practice of Islamic mortgages including ignorance of market pricing in the negotiation of rentals and trading of equity units, and transfer of all ownership risks and rewards (vacancy, damage, destruction and market) to one partner (i.e. customer). Practice is divergent from principles in the area of economic substance. Modified IMM is developed by taking into account Musharakah principles; and differences highlighted by calculating financial figures – to determine financial rights and liabilities of the parties.

Divergence from the principles of risk-return sharing leads to failure in the achievement of Islamic finance objective of equitable distribution of wealth. Moreover, protection of capital for financier reduces the market abilities to achieve financial stability by matching credit expansion with the rise in the real economy. Shari’ah boards and regulators, as well as, management of Islamic banking industry are expected to incorporate proposed changes in-practice for the realization of Islamic finance objectives.

This study contributes to Islamic finance literature in the area of risk-return sharing. Based on important objectives of Islamic finance – equitable distribution of wealth and financial stability – divergences identified and a modified IMM in the light of Musharakah principles is presented. Descriptive rules are transformed into financial figures to document financial rights and liabilities of the concerned parties.

Using the theory of planned behaviour (TPB) as an analytical framework, this paper aims to investigate the direct effects of attitude, subjective norm, perceived behavioural control, price fairness and Islamic altruism. It also explores how these path linkages can be moderated by Islamic altruism.

Data are gathered via survey questionnaires on 287 Muslim bank customers in major cities of East Malaysia. The data are then tested using partial least squares.

The results show that attitude, subjective norm, perceived behavioural control, price fairness and Islamic altruism are significantly influenced by Muslim bank customers’ intention to choose Islamic home financing products. Islamic altruism is also found to significantly moderate the relationship between price fairness and behavioural intention.

Three limitations are available for future research that include the geographical restriction, respondents’ selection and a limited number of battery items used.

Essentially, the results of this study serve as a guide for Islamic bank managers or mortgage providers to improve their pertinent marketing strategies, which are vital to enhancing the acceptance rate of Islamic mortgage.

This study extends the TPB model by incorporating price fairness and Islamic altruism into the Islamic home financing context.

The purpose of this paper is to investigate the choice criteria for Islamic home financing in Malaysian Islamic banks. Most importantly, this study considers establishing a specific rank of choice criteria for Islamic home financing. Moreover, these choice criteria will also be ranked according to the selected demographic elements such as gender, marital status and age range.

This study uses a quantitative study similar to what was employed by previous researchers. The study presents primary data collected by self‐administered questionnaires involving a sample of 150 Malaysian bank customers in Labuan, Malaysia. Of these, 141 questionnaires were returned with a response rate equivalent to 94 per cent. The Islamic home financing choice criteria as perceived by the Malaysian bank customers are analysed using frequencies, independent samples t‐test and ANOVA.

The results suggest that “Shariah principle”, “lower monthly payment”, “transparency practice”, “interest‐free practice” and “100 per cent financing” are the first five decision criteria considered as being very important. The least preferred criteria, among others, are “recommendation”, “longer financing period”, “product range” and “branch location”. Results also suggested that a small number of significant differences are apparent in the importance of choice criteria with respect to gender, marital status and age range.

The study contains three limitations. The first limitation was based on the sample area for the study which is confined to Labuan, Malaysia. Second, this study restricted the use of factor analysis since the data did not allow for aggregation. Third, this study was also unable to perform ANOVA for religion differences as the sample consisted largely of Muslims.

The results are primarily beneficial to academics and practitioners in Malaysia by offering an insight into choice criteria for Islamic home financing. This study provides new results about different kinds of customer types and their preferences with regards to Islamic home financing selection. As such, Islamic bank managers can learn and plan to offer attractive schemes for the Islamic home financing market that meet Malaysian bank customers' needs. For the researcher, this study contributes to existing body of knowledge by providing an investigation of choice criteria in the Islamic home financing. Indeed, this study is considered an “eye‐opener” for Islamic home financing choice criteria which has limited previous studies. Originality/value –This study introduces the choice criteria for Islamic financing among Malaysian bank customers. The study offers an insight into Islamic home financing choice criteria in Malaysia which has limited previously been investigated.

The purpose of this study is to investigate the effects of service quality, product choice and Islamic debt policy on consumer attitude within the context of Islamic mortgage sector in Malaysia. The present study also examines the effect of attitudinal-behaviour on consumer preference towards preference of Islamic mortgage selection.

The study is based on questionnaire survey. Data are collected using sample from customers of Islamic banks in Malaysia. The study collects 351 respondents. Data are analysed using partial least squares (PLS).

The results indicate that service quality, product choice and Islamic debt policy significantly influence consumer attitude, in turn, affecting the Islamic home financing preference. Consumer attitude also mediates the effects of service quality, product choice and Islamic debt policy on the Islamic home financing preference.

Several limitations warrant future research. First, this study considers only a specific user group in one public university. Second, this study does not consider attitude as a moderator. Third, this study suffers from the limited number of factors used. These limitations, however, provide directions for future research.

Our results will add value to the consumer preference topic for Islamic home financing literature. The present study provides bank managers with valuable insights into better planning of Islamic home financing services in Malaysia.

This study is a pioneering effort at exploring consumer attitude and preference from the context of Islamic mortgage sector in Malaysia. The use of PLS analysis provides another important contribution to the literature in this area.

This study aims to examine the factors that determine consumer behaviour of ijarah home financing using the Islamic theory of consumer behaviour (ITCB). In particular, the specific contract used is al-ijarah muntahia biltamleek. Subsequently, the term al-ijarah muntahia biltamleek home financing is used throughout the paper.

Drawing upon the ITCB, the present study examines patronage factors for al-ijarah muntahia biltamleek home financing. This study’s data were drawn from valid 409 usable questionnaires.

Partial least square results suggest that the role of iman, Islamic mortgage support and maqasid consumer index are significantly related to consumer behaviour. In turn, consumer behaviour is instrumental in determining religious satisfaction.

Two limitations were observed that provide direction for future studies. Firstly, the current study is only tested in one particular Islamic home financing product that may explain why the generalisation is an issue. Secondly, the theory is still in its infancy stage, which, of course leads to some criticisms pertinent to its parsimony and applicability to other settings. Despite these limitations, however, this study aims to suggest a so-called Islamic model of factors that can explain consumer behaviour of a particular Islamic home financing product. In particular, scrutinising the product acceptance from the context of the ITCB can open a new debate in this area.

This study indeed reduces the theory–practice gap by suggesting new indicators that are workable to improve consumers’ positive perception of Islamic home financing. Given the results obtained, the ITCB provides a better prediction for consumer behaviour of al-ijarah muntahia biltamleek home financing.

This study expands the applicability of the ITCB to include al-ijarah muntahia biltamleek home financing.

The purpose of this study is to examine the contributing factors that affect consumer behaviour of Islamic home financing in Malaysia. The effects of perceived religiosity on property, perceived Islamic debt principle and perceived maqasid on homeownership on consumer behaviour are examined. Furthermore, the effects of perceived religiosity and consumer behaviour on religious satisfaction are also investigated.

Using the theory of Islamic consumer behaviour (TiCB) as a baseline theory identified from the literature, this study proposes a conceptual model of consumer behaviour of Islamic home financing in Malaysia. Data from the 205 usable questionnaires are analysed using partial least squares (PLS).

The PLS results suggest that perceived religiosity on property, perceived Islamic debt principle and perceived maqasid on homeownership are instrumental in determining consumer behaviour, thus revealing these factors as “Islamic factors” that represent the TiCB. Furthermore, the effect of consumer behaviour on religious satisfaction is also significant, implying that good behaviour makes people happier – seeking pleasure for doing well that is blessed and approved by Allah (S.W.T).

Two limitations are available for future studies. First, this study included only Malaysians in East Malaysia, suggesting that further testing of the proposed model should be conducted across different geographies to determine the generalisability of this study’s findings. Second, this study’s contributions are narrowed down to the factors examined. These limitations, however, provide directions for further future research.

The results provide directions to bank managers to effectively manage Islamic home financing services for the benefit of their customers. Islamic home financing products tend to be used by consumers if the patronage factors investigated are considered more profoundly.

This study examines the behaviour of consumers of Islamic home financing using the proposed framework derived from TiCB.