Sharia-compliance fintech firm Offa has launched into buy-to-let finance, in a bid to improve what it deemed the “old-fashioned and cumbersome” world of Islamic finance.
The Birmingham-based mortgage provider said it can make fast and easy decisions due to a modern end-to-end digital process.
Islamic mortgage products work by properties being co-purchased and then leased – because conventional lending is prohibited in Islam.
Its buy-to-let rental rates start at 6.2%.
Sagheer Malik, Offa’s chief commercial officer and managing director of retail finance, said: “Offa is all about a 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.
“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.”
Offa’s buy-to-let range offers top slicing when assessing affordability criteria, which means personal monthly income can be used to make up the difference if the projected rent isn’t enough.
The service is available to anyone purchasing property in England and Wales aged over 21 for properties valued between £60,000 and £1 million.
First-time landlords can also apply, and Offa’s buy-to-let solutions are also available for houses in multiple occupancy (HMOs).
In April, Offa announced a £100 million credit line for its bridge finance arm from a fund managed by United Arab Emirates-based Gulf Islamic Investments Group (GII). The credit line is the largest of its kind outside of the Gulf, creating significant capacity for the Birmingham-headquartered business to expand and diversify its financial propositions in the UK property market.
Offa doesn’t invest in sectors deemed harmful to society, such as alcohol, tobacco, and the arms trade.
