Islamic fintech Offa launches ultra-fast and easy bridge-to-let finance

Offa, the UK’s leading Islamic property finance fintech, has today launched an innovative bridge-to-let finance service – combining Offa’s ultra-fast bridge product with its modern, paperless buy-to-let (BTL).

Offa, which was the first to introduce Sharia-compliant bridge finance to the UK, is on a mission to disrupt and transform 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.

Sagheer Malik, Offa’s Group Chief Commercial Officer and MD of Retail Finance, said: “Speed is the crucial factor in real estate. 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 out-perform those of our competitors in Islamic finance but also those in conventional finance.”

Acquiring bridge and BTL finance separately can take many months, but by combining both simultaneously, Offa’s Sharia-compliant bridge-to-let can provide finance within weeks instead of months, depending on credit rating and risk criteria. This allows aspiring landlords or seasoned property investors to buy and upgrade below-value properties, releasing equity.

Customers avoid double-application fees for bridge and BTL, paying a flat £495 bridge-to-let fee instead, and they save 0.5% on BTL arrangement fees. There is no minimum term on the bridge product, 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 (commonly known in the industry as top-slicing).

Naseer Ahmed, Offa’s Managing Director of Bridge Finance, said: “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.

Offa recently 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 £230 million 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.