Fintech
Islamic Fintech Offa Launches BTL Finance
OffThe UK’s first fintech specialising in Sharia-compliant bridging finance, has today launched an innovative buy-to-let (BTL) financing service, with fast-track financing decisions delivered through a modern paperless process, aiming to disrupt and transform the traditional, antiquated and cumbersome world of Islamic finance.
Powered by the latest software, Offa’s BTL service caters to the needs of Muslim and non-Muslim real estate investors with its flexible real estate financing solutions and end-to-end digital processes, making it quick and easy to apply and get a quick decision.
Sagheer Malik, Chief Commercial Officer and MD of Retail Finance at Offa, said: “Offa is all about high-quality, modern service and speed is of the essence in the real estate industry. With the launch of our ultra-fast buy and let service, combined with our teams’ decades of industry experience, we are bringing Islamic finance into the 21st century, leaving behind the burdensome bureaucracy and cumbersome systems that many clients have traditionally suffered from in the past.
“Our streamlined digital application process, which is unmatched in the Islamic finance market, means that customers can potentially get a fair decision in minutes, depending on their credit rating and risk criteria.”
These Islamic BTL products are available to new and experienced homeowners who are UK residents or UK expats. Instead of using interest, Offa’s BTL product involves the Islamic finance principles of co-ownership with leasing. Customers acquire ownership in partnership with Offa and make monthly payments to increase their share, becoming owners over time.
Another key feature of Offa’s BTL product is that, where a customer’s rental income is not sufficient to meet the affordability criteria for BTL financing, Offa allows them to offset the difference against their own personal monthly income (commonly known in the industry as top-slicing).
The service is available to anyone buying a property in England and Wales aged 21 or over and valued between £60,000 and £1 million. New homeowners are also eligible to apply and Offa’s BTL solutions are also available for homes in multiple occupation (HMO).
Offa offers an ethical finance model designed in accordance with the principles of Islamic finance, which means not charging interest and investments in sectors considered harmful to society, such as alcohol, tobacco and arms trade.
In April, Offa announced a £100m credit facility for its bridge finance arm from a fund managed by UAE-based Gulf Islamic Investments Group (GII). The credit facility is the largest of its kind outside the Gulf, creating significant capacity for the Birmingham-based business to expand and diversify its financing propositions in the UK property market.