Sharia-compliant finance provider Offa has said it wants to grow through acquisitions and organically, as it announced the purchase of a portfolio from the Bank of Ireland.
Offa purchased more than 350 home purchase plans from the Bank of Ireland, made up of Alburaq Sharia-compliant deals.
The transaction meant the customers transferred to offer will have access to a broader range of Sharia-compliant finance.
The Alburaq portfolio is one of the oldest Sharia-compliant home finance products to have launched in the UK.
Amir Firdaus (pictured), CFO of Offa, said: “It is testament to Offa’s abilities that Bank of Ireland has agreed to sell their Islamic home finance portfolio to us. This marks another chapter in Offa’s ambitious growth plans.
“Members of the Offa executive team are already very much familiar with Alburaq’s clients, having helped distribute this book almost two decades ago, and we are delighted that these customers are now coming home to us.”
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He added: “Those who have been transferred as part of this purchase and are eligible will now have access to a wider range of Sharia-compliant property refinancing options. We are now focused on ensuring a seamless migration for customers to our servicing platform.”
Offa recently launched its innovative buy-to-let (BTL) service, which uses a paperless process to transform Islamic finance.
It has £230m of Sharia-compliant funding for its BTL product, which it said gave it the capacity to expand and diversify.
Offa on the road to expansion
Firdaus spoke to Mortgage Solutions to mark the transaction, and discuss the significance of the deal and Offa’s plans for expansion.
How did Offa come to be involved in this deal?
This came about thanks to both Bank of Ireland and Offa seeking the best outcome for customers. The Alburaq product has not been available for new customers since 2009, so the sale of the portfolio to Offa allows us to provide a wider range of Sharia-compliant property finance options – including our recently launched BTL product.
Offa is the first British financial institution to buy an Islamic home finance book.
Why is it important for a lender like Offa to work with a well-known institution like the Bank of Ireland?
The fact that such a highly respected financial institution as the Bank of Ireland has agreed to sell their Islamic home finance portfolio to us is a testament to Offa’s quality standards and ability to provide excellent customer service. It is another demonstration of our ambition to grow through acquisitions and not just organically.
Why is it important for borrowers who want a Sharia-compliant mortgage to go with a lender like Offa?
Offa is the UK’s first Sharia-compliant bridge finance fintech and recently launched an innovative BTL finance service with fast funding decisions delivered via a modern paperless process, aiming to disrupt and transform the traditionally old-fashioned and cumbersome world of Islamic finance.
We are bringing Islamic finance into the 21st century, leaving behind the onerous paperwork and cumbersome systems that many customers have typically suffered in the past – meeting the needs of both Muslim and non-Muslim property investors with end-to-end digital processes, making it fast and easy to apply and get a quick decision.
Our streamlined digital application process – unparalleled in the Islamic finance market – means clients can potentially get a fair decision within minutes, depending on credit rating and risk criteria.
Offa also has the most experienced and accomplished Islamic finance team in the UK.
What will Offa be able to provide its borrowers?
Customers will benefit from our full range of Sharia-compliant products, including bridge finance and BTL finance.
What does this deal mean for Offa’s strategy going forward? Is this part of its expansion plan?
Offa intends to grow through acquisitions as well as organically, and this deal is a further example of our strategy.
