Quick Buy-to-Let Islamic Finance for British Expats Model Launched

Modern, paperless service disrupts traditional British Islamic finance.
Attractive investment proposition for UAE-based Britons, family offices or other investors with a preference for bricks and mortar as a halal place to invest, with demand outstripping supply in the UK.

Offa, the UK’s first Shari’ah-compliant bridge finance fintech, has today launched an innovative new buy-to-let finance (BTL) service providing fast funding decisions for British expats, delivered via a modern paperless process.

Powered by next-generation technological innovation, Offa’s BTL service replaces legacy  finance systems with its flexible and ethical Islamic property finance solutions, and end-to-end digital processes making it fast and easy for expats to apply and get a quick decision.

These Islamic BTL products are available to new and seasoned British landlords living in 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, said: “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 that they typically face. Our modern, ultra-fast, paperless buy-to-let finance solves that problem.

“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 leading Shari’ah-compliant global alternative investment company with over $4.5 billion of assets under management, took a majority stake in Offa in mid-2022.

GII’s co-Founders and co-CEOs, Mohammed Alhassan and Pankaj Gupta, said: “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 using interest, Offa follows the Islamic finance principles of co-ownership-with-leasing. Customers acquire the property in partnership with Offa and make monthly payments to increase their share, over time owning it.

Another key feature of Offa’s BTL product is that where a customer’s rental income is not sufficient for the required affordability criteria for the BTL finance, Offa allows them to make up the difference with their personal monthly income (commonly known in the industry as top-slicing).

The service is available to anyone purchasing property in England and Wales aged 21 or over, either under their personal name or as a limited company, and where the property’s value is between £60,000 and £1 million. First-time landlords can also apply, and Offa’s BTL solutions are also available for houses in multiple occupancy (HMOs).

Offa provides an ethical finance model designed in accordance with Islamic finance principles, which means not charging interest and investment into sectors deemed harmful to society – such as alcohol, tobacco, and the arms trade.

In April, Offa announced a £100 million credit line for its bridge finance arm from a fund managed by GII. The credit line is the largest of its kind outside of the Gulf, creating significant capacity for the Birmingham-headquartered business to expand and diversify its financial propositions in the UK property market.