- Modern, paperless service disrupts conventional British Islamic finance.
- Attractive funding proposition for UAE-based Britons, household workplaces or different buyers with a desire for bricks and mortar as a halal place to take a position, with demand outstripping provide within the UK.
Offa, the UK’s first Shari’ah-compliant bridge finance fintech, has as we speak launched an progressive new buy-to-let finance (BTL) service offering quick funding choices for British expats, delivered through a contemporary paperless course of.
Powered by next-generation technological innovation, Offa’s BTL service replaces legacy finance programs with its versatile and moral Islamic property finance options, and end-to-end digital processes making it quick and simple for expats to use and get a fast resolution.
These Islamic BTL merchandise can be found to new and seasoned British landlords residing within the Gulf Cooperation Council (GCC) states, Australia, the European Union, Canada, Singapore and Brunei.
Sagheer Malik, Offa’s Chief Commercial Officer and MD of Retail Finance, stated: “I’ve met many British expats who want Islamic buy-to-let finance, however who battle to deal with the onerous paperwork and old-style programs that they usually face. Our fashionable, ultra-fast, paperless buy-to-let finance solves that drawback.
“With our team’s decades of industry experience and a streamlined digital application process, we are bringing 21st century Shari’ah-compliant BTL finance to our customers.”
UAE-based Gulf Islamic Investments group (GII), a number one Shari’ah-compliant world different funding firm with over $4.5 billion of belongings underneath administration, took a majority stake in Offa in mid-2022.
GII’s co-Founders and co-CEOs, Mohammed Alhassan and Pankaj Gupta, stated: “This latest market innovation from Offa brings additional investment opportunities in UK property to Britons resident across the Arabian Gulf and further afield. We applaud Offa’s initiatives to attract further expatriate capital to the UK’s vibrant property market as an exciting alternative asset management strategy.”
Instead of utilizing curiosity, Offa follows the Islamic finance rules of co-ownership-with-leasing. Customers purchase the property in partnership with Offa and make month-to-month funds to extend their share, over time proudly owning it.
Another key function of Offa’s BTL product is that the place a buyer’s rental earnings will not be adequate for the required affordability standards for the BTL finance, Offa permits them to make up the distinction with their private month-to-month earnings (generally recognized within the business as top-slicing).
The service is obtainable to anybody buying property in England and Wales aged 21 or over, both underneath their private title or as a restricted firm, and the place the property’s worth is between £60,000 and £1 million. First-time landlords may also apply, and Offa’s BTL options are additionally out there for homes in a number of occupancy (HMOs).
Offa supplies an moral finance mannequin designed in accordance with Islamic finance rules, which suggests not charging curiosity and funding into sectors deemed dangerous to society – akin to alcohol, tobacco, and the arms commerce.
In April, Offa introduced a £100 million credit score line for its bridge finance arm from a fund managed by GII. The credit score line is the biggest of its form exterior of the Gulf, creating vital capability for the Birmingham-headquartered enterprise to increase and diversify its monetary propositions within the UK property market.