Offa is the first fintech company in the United Kingdom (UK) to offer shariah-compliant bridge finance. The company recently introduced a cutting-edge buy-to-let (BTL) finance service for British expatriates.
Offa provides shariah-compliant and paperless property financing solutions. This approach replaces traditional finance systems with fast, efficient, and ethical alternatives for Islamic property finance.
“I have met many British expats who need Islamic buy-to-let finance but who struggle to cope with the onerous paperwork and old-style systems,” stated Offa’s Chief Commercial Officer and Managing Director of Retail Finance, Sagheer Malik.
By leveraging next-generation technology, Offa provides a modern solution to these issues. Sagheer highlighted their team’s extensive industry experience in delivering a streamlined digital experience.
Moreover, the BTL plan is an attractive investment opportunity for expatriates across different regions. This broadens the UK property market’s appeal and potentially attracts more investors. The BTL products are available to British expatriates in Gulf Cooperation Council (GCC) states, Australia, Europe, Canada, Singapore, and Brunei.
In mid-2022, UAE-based Gulf Islamic Investments group (GII), which manages over US$4.5 billion in assets, acquired a majority stake in Offa.
GII Co-Founders and Co-Chief Executive Officer (CEO) Mohammed Alhassan and Pankaj Gupta praised Offa’s introduction of new investment opportunities: “We applaud Offa’s initiatives to attract further expatriate capital to the UK’s vibrant property market as an exciting alternative asset management strategy.”
Offa’s BTL finance model follows Islamic principles of co-ownership with leasing. Customers make monthly payments, and over time, they gradually increase their ownership share until they own the property. This approach eliminates the charging and paying of interest. Instead, it promotes shared risk and reward in financial transactions.
Additionally, Offa’s BTL service offers flexibility through its top-slicing option. Applicants who do not qualify for financing because their rental income falls short of meeting the affordability criterion can make up for it with their monthly income.
Individuals aged 21 and above purchasing properties in England and Wales are eligible for the service. However, the property must be valued between UK£60,000 and UK£1 million.
Offa’s service is also open to first-time landlords and applies to houses in multiple occupancy (HMOs).
In April, Offa secured a UK£100 million credit line from a GII-managed fund for its bridge finance operations. This is the largest credit line outside the GCC region. This means Offa now has the financial resources needed to support its ambitious expansion in the UK property market.
