Offa cuts buy-to-let rates
Offa, the UK’s leading Islamic property finance fintech, has announced a new round of significant rate drops for its Sharia-compliant buy-to-let (BTL) products.
Offa’s fixed two-year BTL rental rates have dropped by up to 0.32%, and up to 0.34% for five-year fixed products, with additional rate drops on discounted variable rate products of up to 0.24%. Offa is the only Islamic property finance provider offering a discounted variable rate product in the UK.
Sagheer Malik, group chief commercial officer & managing director of Home Finance, said: “I am proud that Offa provides a faster and better service than any other Islamic property finance provider, and even better than some conventional high street banks. This is part of our mission to bring Islamic finance into the 21st century, leaving behind the onerous paperwork and cumbersome systems that many customers have typically suffered in the past.
“We have kept our promise of dropping rates for Offa’s fast and easy Sharia-compliant BTL finance products whenever possible, as we are always focused on giving our customers a great deal. 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.”
Buy-to-Let rates have consistently dropped over the past two years, and Offa’s discounted variable rate products can allow customers to benefit from any further drops. The product also allows unlimited additional payments without penalties, and there is no early buyout charge.
Instead of using interest, Offa’s BTL product involves 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.
Offa, the first company to launch Sharia-compliant bridge finance in the UK, recently launched an innovative bridge-to-let finance service combining Offa’s ultra-fast bridge product with its modern, paperless BTL.
Offa also recently purchased Bank of Ireland’s Alburaq Sharia-compliant home finance portfolio in a landmark deal, and announced it had received Financial Conduct Authority authorisation to provide upcoming Islamic home purchase plans.
The company received £230m of sharia-compliant funding for its BTL product, offering significant capacity for the business to expand and diversify its financial propositions in the UK property market.
Offa follows an ethical finance model designed in accordance with Islamic finance principles, which means not charging interest and not investing in sectors deemed harmful to society – such as the arms trade, animal testing, gambling, alcohol and tobacco.