Islamic property finance fintech Offa has announced a series of rate and fee reductions across its Sharia-compliant buy-to-let product range, alongside expanded eligibility criteria designed to broaden access to its offerings.
The fintech, which pioneered Sharia-compliant bridging in the UK, has reduced its two-year fixed buy-to-let rates by up to 0.21%, and five-year fixed rates by up to 0.24%. Tracker rates have also been lowered, and product fees for houses in multiple occupation (HMO) and multi-unit freehold block (MUFB) products have dropped from 1.5% to 1%.
Sagheer Malik, chief commercial officer and managing director of retail finance at Offa, said: “We will continue to drop rates for our fast and easy Sharia-compliant BTL finance products whenever possible, always focusing on giving our customers the best deal.”
He added that Offa’s digital application process aims to eliminate traditional administrative burdens: “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.”
Recent criteria changes have further opened up Offa’s proposition. First-time buyers are now eligible for buy-to-let finance, with the minimum age lowered to 18. The minimum income requirement has also been reduced to £18,000. Portfolio landlords will benefit from stress testing based on average five-year fixed rates rather than standard variable rates, making larger portfolio cases more feasible.
Offa has also widened its reach to overseas borrowers, with British expats in Malaysia and Hong Kong now eligible for its Sharia-compliant buy-to-let finance.
Unlike conventional lending, Offa’s model is based on co-ownership-with-leasing, where the property is acquired jointly with Offa. Customers make monthly payments that gradually increase their share of the property until they own it outright.
The lender recently secured £230m in Sharia-compliant funding to support its expansion in the UK property market. It has also acquired the Alburaq Islamic home finance portfolio from Bank of Ireland and gained FCA authorisation to provide Islamic home purchase plans.
