UK's Offa launches paperless buy-to-let finance service

UK-based Shariah-compliant fintech Offa has introduced a new buy-to-let (BTL) finance service to overhaul traditional property finance solutions. 

The service offered by the bridge finance fintech is available to anyone - British resident or expatriate, Muslim or non-Muslim – who is keen to purchase a property in England and Wales and is above the age of 21. The property must be valued at between £60,000 and £1 million.

Offa’s BTL product is built on Islamic finance principles of co-ownership-with-leasing. Customers can acquire the property in partnership with Offa and make regular monthly payments to increase their share, over time owning it. 

If a customer’s rental income does not meet the product's affordability criteria, Offa allows them to make the up the difference with their personal monthly income, the company said in a statement. 

“Our digital application process means clients can potentially get a fair decision within minutes, depending on credit rating and risk criteria,” Sagheer Malik, Offa’s chief commercial officer said. 

The Birmingham-headquartered fintech offers an ethical model designed in accordance with Islamic finance principles, which includes no interest and invests in sectors not involved in activities deemed harmful to society. 

In April, Offa announced a £100 million credit line for its bridge finance arm from a fund managed by UAE-based Gulf Islamic Investments Group. The credit line is the largest of its kind outside the Gulf.