Islamic FinTech Offa launches buy-to-let finance service

By Gloria Methri

Offa, the UK-based Sharia-compliant bridge finance FinTech, has launched a new buy-to-let finance (BTL) service, with fast funding decisions delivered via a modern paperless process. The move aims to transform the traditional and cumbersome world of Islamic finance.

Powered by the latest software, Offa’s BTL service caters to both Muslim and non-Muslim property investors with its flexible property finance solutions and end-to-end digital processes, making it easy to apply and make a quick decision.

Sagheer Malik, Offa’s Chief Commercial Officer and MD of Retail Finance said, “Offa is all about high-quality, modern service, and speed is crucial in real estate. With the launch of our ultra-quick buy-to-let service, combined with our teams’ decades of industry experience, we are bringing Islamic finance into the 21st century, leaving behind the onerous paperwork and cumbersome systems that many customers have typically suffered in the past.”

He added, “Our streamlined digital application process – which is unparalleled in the Islamic finance market – means clients can potentially get a fair decision within minutes, depending on credit rating and risk criteria.”

The Islamic BTL products are available to new and seasoned landlords who are British residents or ex-pats. 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, eventually owning it.

Another key feature is that when a customer’s rental income is not sufficient to meet the required affordability criteria for BTL finance, Offa allows them to make up the difference with their personal monthly income.

The service is available to anyone purchasing property in England and Wales aged 21 or over, where the property’s value is between £60,000 and £1 million. First-time landlords can also apply, and Offa’s BTL solutions are also available for houses in multiple occupancy (HMOs).

Offa provides an ethical finance model designed in accordance with Islamic finance principles. This means not charging interest and investing in sectors deemed harmful to society, such as alcohol, tobacco, and the arms trade.