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Offa launches paperless buy-to-let finance
Sharia-compliant lender Offa has released a buy-to-let (BTL) finance solution with a paperless process.
The fintech lender said this would “disrupt and transform” the “traditionally old-fashioned and cumbersome world of Islamic finance”.
Offa’s service has been developed to cater to both Muslim and non-Muslim property investors, with end-to-end digital processes that are expected to make it easier to get a decision.
Offa’s BTL products are available to new and experienced landlords who are British residents or UK expats. Instead of charging interest, the lender uses Islamic finance principles of co-ownership with leasing.
This means borrowers own the property in partnership with Offa and make monthly payments to increase their share over time.
Offa will lend against properties in England and Wales with a value between £60,000 and £1m and is also open to houses in multiple occupation (HMOs).
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Sagheer Malik, chief commercial officer and managing director of retail finance at Offa, 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.”
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.”
In April, Offa secured a £100m credit line for its bridge finance arm from a fund managed by UAE-based firm Gulf Islamic Investments Group. It was the largest credit line of its kind outside of the Gulf and will allow the business to expand and diversify its proposition in the UK property market.
Also in line with Islamic principles, the lender does not invest in sectors it considers harmful to society, such as alcohol, tobacco and the arms trade.