Islamic property finance fintech, Offa, has announced a new round of rate reductions on its Sharia-compliant buy-to-let products.
Offa’s fixed two-year buy-to-let rental rates have dropped by up to 0.32% and five-year rates are down by up to 0.34%, 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. The product also allows unlimited additional payments without penalties, and there is no early buyout charge.
Instead of using interest, Offa’s buy-to-let 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 also 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.
Offa, the first company to launch Sharia-compliant bridge finance in the UK, recently launched a bridge-to-let finance service.
It has also received FCA authorisation to provide upcoming Islamic home purchase plans.
Sagheer Malik (pictured), group chief commercial officer and 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.”
