Finally, an easy way to get into the buy-to-let market that’s in line with Islamic principles.

If you’re looking to invest in property, you might be wondering if there are ways to do so that align with your religious beliefs. Well, good news: Offa, a company based in Birmingham, is now offering a buy-to-let mortgage that’s fully compliant with Islamic law (Sharia).

How Does It Work?

Many people are unaware that there’s a big difference between traditional mortgages and Islamic finance. The big difference? Islamic finance doesn’t allow interest payments, so Offa uses a clever system:

• Co-Ownership: You and Offa jointly own the property.
• Rental Agreement: You agree to rent the property back from Offa.

This system allows Offa to get a return on its investment without charging interest, which is prohibited in Islam.

What are the benefits?

Offa says its buy-to-let service is quick and easy, thanks to its modern digital system. Here’s what makes it stand out:

• Fast Decisions: Get a decision in minutes, depending on your credit rating and risk profile.
• Top Slicing for Affordability: If your rental income isn’t enough to cover the monthly payments, Offa allows you to use your own income to make up the difference.
• No Interest: Completely in line with Islamic principles.
• Available for a Wide Range of Properties: You can use this system to buy properties from £60,000 to £1 million in England and Wales. HMOs are also an option.

What’s the catch?

The only real “catch” is the higher rental rate. Offa’s rates start at 6.2%, which is higher than some traditional buy-to-let deals. However, you need to factor in that it’s a different type of loan and they’re also a relatively new player in the market.

Offa’s Big Plans

Offa is serious about growing its business. In April, they secured a £100 million credit line from Gulf Islamic Investments Group (GII), the largest of its kind outside of the Gulf region. This means they’ll have more money to lend and can offer more innovative financial products to property investors.

Worth Considering

If you’re looking for a Sharia-compliant way to invest in property, Offa is worth checking out. They’ve made the process easy, fast, and convenient, and they’re committed to expanding their services. This could be a great opportunity to get into the buy-to-let market without compromising your religious beliefs.