Offa the Islamic property finance fintech has launched a bridge-to-let finance service – combining Offa’s bridge product with its paperless buy-to-let (BTL).
Commenting on the launch Offa’s group chief commercial officer and managing director of retail finance Sagheer Malik said: “Speed is the crucial factor in real estate. Our ultra-quick bridge-to-let service is the first of its kind in this sector, allowing both Muslims and non-Muslims to save huge amounts of money, unlocking equity and providing wealth for their families.
Malik explains that customers avoid double-application fees for bridge and BTL, paying a flat £495 bridge-to-let fee instead, and they save 0.5% on BTL arrangement fees.
There is no minimum term on the bridge product and if a buyer’s rental income is not sufficient for BTL finance, they can make up the difference with their personal monthly income – known as top-slicing.
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.
The service is available to anyone purchasing property in England and Wales aged 18 or over, with a minimum income of £18,000 per annum, and with a minimum property value of £80,000.
