Offa, a UK-based Islamic property finance fintech, has launched a new bridge-to-let finance service, combining Offa’s bridge product with its paperless buy-to-let (BTL).
By launching a Sharia-compliant bridge-to-let, Offa plans to provide finance within weeks instead of months, depending on credit rating and risk criteria.
Traditionally, acquiring bridge and BTL finance separately can take many months. Recognising this challenge, Offa is simultaneously combining both, enabling landlords or property investors to buy and upgrade below-value properties, releasing equity.
“Speed is the crucial factor in real estate,” explained Sagheer Malik, group chief commercial officer and MD of retail finance at Offa. “Our ultra-quick bridge-to-let service is the first of its kind in this sector, allowing both Muslims and non-Muslims to save huge amounts of money, unlocking equity and providing wealth for their families. We are now offering faith-based finance products that not only outperform those of our competitors in Islamic finance but also those in conventional finance.”
Offa, which became the first to introduce Sharia-compliant bridge finance to the UK, plans to disrupt the traditionally old-fashioned and cumbersome world of Islamic finance through flexible, faith-based property finance solutions and digital processes, making it fast and easy to apply and get funding.
Bringing ‘Islamic finance into the 21st century’
The new finance service will help customers avoid double-application fees for bridge and BTL, paying a flat £495 bridge-to-let fee instead, while helping them save 0.5 per cent on BTL arrangement fees. The bridge product also doesn’t require a minimum term, providing flexibility, and if a buyer’s rental income is not sufficient for BTL finance, they can make up the difference with their personal monthly income.
Naseer Ahmed, managing director of bridge finance at Offa, added: “By combining our teams’ decades of industry experience with the latest technology, we at Offa are on a mission to bring Islamic finance into the 21st century, leaving behind the onerous paperwork and cumbersome systems that many customers have typically had to suffer in the past.”
Instead of using interest, Offa’s BTL product involves the Islamic finance principles of co-ownership-with-leasing. Customers acquire the property in partnership with Offa and make monthly payments to increase their share, over time owning it.
The service is available to anyone purchasing property in England and Wales aged 18 or over, with a minimum income of £18,000 per annum, and with a minimum property value of £80,000.
The news comes shortly after Offa purchased Bank of Ireland’s Alburaq Sharia-compliant home finance portfolio in a landmark deal, and also announced it had received FCA authorisation to provide Islamic home purchase plans. The company received £230million of sharia-compliant funding for its BTL product, offering significant capacity for the business to expand and diversify its financial propositions in the UK property market.
Offa follows an ethical finance model designed in accordance with Islamic finance principles, which means not charging interest and not investing in sectors deemed harmful to society, such as alcohol, tobacco, animal testing, gambling and the arms trade.
Source: https://thefintechtimes.com/
