"We are dedicated to bringing Islamic finance into the 21st century, leaving behind the onerous paperwork and cumbersome systems that many customers have typically suffered in the past"
- Sagheer Malik - Offa
Islamic property finance fintech Offa has announced that it has introduced a series of rate reductions across its Sharia-compliant buy-to-let product line.
The company confirmed that two-year BTL rates have been cut by up to 0.21%, with five-year fixed rates reduced by as much as 0.24%. Further adjustments include drops on tracker rates, while fees for homes in multiple occupancy and multi-unit freehold blocks have been lowered from 1.5% to 1%.
Offa has also broadened its criteria for BTL applicants. First-time buyers are now eligible for BTL finance, and the minimum age requirement has been lowered to 18. Applicants must meet a minimum annual income of £18,000.
For portfolio landlords, stress testing will now be based on the average of current five-year fixed rates, replacing the previous reliance on the standard variable rate. The change is intended to make financing large portfolios more practical. The firm has also widened access for overseas clients, including British expats living in Malaysia and Hong Kong.
Rather than charging interest, Offa’s BTL products operate under Islamic finance principles. The structure follows a co-ownership-with-leasing model, in which customers gradually increase their share of the property through monthly payments until they own it outright.
Offa recently secured £230m in Sharia-compliant funding to support the expansion of its BTL offerings. The investment provides the firm with significant capacity to diversify within the UK property finance market.
“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," explained Sagheer Malik, chief commercial officer and managing director of retail finance.
He added, “We are dedicated to bringing Islamic finance into the 21st century, leaving behind the onerous paperwork and cumbersome systems that many customers have typically suffered in the past. 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.”
