Frequently asked questions

FTV is the Finance to Value ratio and is calculated based on the amount of capital we have invested against the market valuation of the underlying property.

FTC is the Finance to Cost ratio and is calculated based on the amount of capital we have invested against the total cost of purchasing the underlying property.

Both FTV and FTC are ratios which measure the amount of finance made available in each transaction.

You can view the maximum FTV and FTC amounts we offer for our various products on the Products Page. Where there is a shortfall in the amount of finance offered, this will need to be sourced by the customer themselves.

After performing an initial case assessment, we may decide to proceed by providing an Indicative Terms Agreement. You will need to return this together with other forms, which you can access on our website. 

Subject to you passing our initial due diligence checks, the agreement will require you to fund the costs relating to the application process. This includes the cost of obtaining a property valuation and instructing solicitors.

Once we have performed all our checks and ensured everything is in order, the agreed finance is made immediately available.

Currently you can expect to receive financing within 2-3 weeks of applying.

We aim to release financing at the earliest opportunity. On some occasions, this may be before all solicitor documents are received, as this could take a further 3-5 weeks.

We are exploring initiatives to streamline and expedite this process further, which will reduce the application to financing period to 1-2 weeks.

The method we use removes any uncertainty in the transaction. The fixed profit element is agreed and capped from the outset, thus protecting the customer.

The Islamic Financing structure we currently use is termed “Commodity Murahaba”, which is based on a deferred sale and purchase of a commodity (usually a metal).

The difference between the sale and purchase price represents the cost of our finance to the customer. Neither the customer, nor Offa as the seller, actually take any risk of price fluctuation in the underlying commodity. 

To start, Offa buys a commodity at the spot price in the market today and transfers the commodity contract to the customer at an agreed mark up. 

The customer immediately sells the commodity contract for cash at the same spot price today. The cash proceeds represent the finance from Offa to the customer. Offa manages this entire process.

From the outset the customer agrees to repay the cash proceeds from the sale of the commodity with a fixed profit margin to the seller (representing the seller’s cost of finance) over an agreed period (the term of the finance agreement).

The Islamic finance structure we use is termed “Commodity Murabaha”, which is based on a deferred sale and purchase of a Sharia-compliant commodity (usually a Metal).

The difference between the sale and purchase price represents the cost of our finance to the borrower.

It works like this: Offa buys a Sharia-compliant commodity from the commodities market via a broker for the amount of financing required.  The customer purchases that commodity from Offa at a fixed mark-up representing Offa’s profit – to be paid at the end of the agreed financing term.  

The customer, who now owns the commodity, then sells that commodity via a different broker to the market (at the same price that Offa bought it for) and receives the proceeds (i.e. the finance amount).

The whole process is managed by Offa. No market risk is taken as the commodity pricing when buying and selling to the market happens in immediate succession and at pricing agreed with the brokers.

Although we operate a fixed profit element, we also state the equivalent percentage rates that these would translate to had the financing been provided as a standard loan, which expired within the agreed term of repayment. This is to allow our clients the ability to compare with ease our ethical products with financing provided by conventional lenders.

By outsourcing representation of ourselves and the client to independent, qualified third parties ensures that any disputes are handled in an open, fair and transparent manner. This also minimises conflicts of interest.

This is dependent upon several factors, including your individual circumstances, the valuation of the property and the finance product you want. We are always happy to talk you through the different options.

Once we have performed an initial assessment, we will send you indicative terms, which are subject to the valuation of the property. By agreeing to these terms, you undertake to pay the valuation fees.

After receipt of payment, we will instruct a qualified surveyor to prepare a valuation report. This independent valuation will allow us to decide whether the property allows for an adequate level of security relative to the financing amount (i.e. meets necessary FTV % criteria).

Yes – a condition of any finance provided is that suitable building insurance is in place on completion.

We have a Sharia Supervisory Board (SSB), which comprise of qualified ethical and Islamic Finance experts and scholars. The SSB remains independent from the business, but are active in overseeing and monitoring our operations. We are also regularly audited by SSB appointed auditors. The auditors regularly engage in gathering evidence, performing in-depth analysis, and reporting their findings to the SSB. They have complete and full access to all our systems, employees, and any transaction-related documentation. 

In some instances, the requirements of Sharia exceed those set by industry bodies. This is visible in areas such as ESG (Environment, Social and Governance), where we cannot obtain Sharia accreditation unless we fulfil a variety of ethical criteria, while for many conventional lenders these remain voluntary acts.

Islamic finance is the system for managing money while adhering to the moral principles of Islam. This comprehensive system covers everything from savings, to investments, and borrowing to buy property.

Islam’s moral principles, which guide Muslims to live in accordance with their faith, is sometimes known as the ‘Sharia’. It is therefore common to describe Islamic financial services as ‘Islamic finance’ or ‘Sharia-compliant’.

No, Islamic banking & finance is popular across both Muslim and non-Muslim communities, and they are available in both Muslim-majority and Muslim-minority countries. In fact, many British banks have developed financial products that are Sharia-compliant.Offa are, however, the first short-term bridge finance provider in the real estate sector whose products are both ethical and fully compliant with Islamic principles.

The term ‘ethical finance’ is used to describe finance which incorporates ethical considerations and criteria. This means taking into account sustainable development goals (SDG), as well as environmental, social and governance (ESG) factors that affect a borrower, their assets, and the wider community. Essentially ethical finance should benefit, not harm, society.

Unlike traditional corporate structures, where there can often be a disconnect between shareholder profit maximisation and corporate social responsibility, ethical financing puts the emphasis on society at large as a key stakeholder.

Ethical considerations will drive investment criteria, so finance will not be extended to activities that are deemed harmful, such as gambling, alcohol, tobacco, and weapons. 

For Islamic finance providers like Offa, our ethics are primarily shaped by Sharia principles, which not only consider the environment and social issues, but also adds a sense of fairness to transactions. Sharia prohibits the charging or receiving of interest, and the profiting from another’s misfortune, such as when a customer is loss-making. 

That means we will not take a draconian approach to late payments and will instead try to make a genuine effort to understand the customer’s circumstances before taking action. In the case where we do charge default penalties, this will go to charity and not be used for our own profit.

Another important difference is that ethical finance customers always know exactly how much to pay, and this does not deviate because of external market conditions. Everything is agreed in an open and transparent manner from the outset.

Ethical finance firms like Offa also donate a share of our profits to good causes, in our case charities such as WaterAid, Cancer Research, Islamic Relief and Donate to Educate.

A DIP (Decision in Principle) or AIP (Agreement in Principle) is a quick, preliminary check that gives you an idea of how much we may be willing to lend based on your financial details. Even if your situation is a little unique, we’ll work with you to make it happen, so don’t worry—we find a way!

Yes, we’re happy to help UK expats! We understand that living abroad can make things a little trickier, but we look at your overall financial situation and find ways to make it work. Whether you’re living in Europe or further afield, just get in touch, and we’ll help you through the process.

Like any investment, there are always some risks, but don’t worry—we’ll help you understand them. Offa’s Buy-to-Let options are designed to be as clear and transparent as possible, and we’re with you every step of the way, making sure you know what you’re getting into. We work with you to find solutions that minimise those risks and give you peace of mind.

Yes, Buy-to-Let properties often come with tax benefits, such as being able to deduct certain expenses like mortgage interest. While we’ll help guide you, we always recommend speaking with a tax professional to get the best advice based on your individual situation. We’ll make sure you’re aware of all the benefits available to you.

While most people can apply, we understand that everyone’s situation is different. Whether you’ve got a bit of a credit history issue or you don’t earn a huge income, we’re here to find a way for you. We take a flexible approach, looking at your overall financial picture—savings, assets, and your ability to make payments—so don’t worry, we’ll make it work!

There’s no set figure! We understand that some people don’t have huge incomes but have solid savings or other assets. We’ll look at your situation as a whole and find a way forward. So even if your income isn’t as high as you’d like, we focus on your ability to make payments and work with you to make it work.

If you need to complain, you can call, email, or write to us. 

All we need to know is:

• What went wrong, including how and when it happened
• How you’d like us to fix it
• Your name, address, and contact phone number

After you’ve made a complaint, we’ll get in touch with you within 24 hours. We’ll let you know that we’re on it and give you an idea of when you can expect a response. Plus, we’ll provide you with a unique reference number so we can easily locate your record.

We aim to resolve most complaints right away, but sometimes it might take a bit longer. Here’s what you can expect:

• Immediate Resolution: We try our best to sort out your complaint within 3 business days. If we can do that, we’ll send you a Summary Resolution communication to confirm the resolution.
• Taking a Bit Longer: If we need more than 3 business days to address your complaint, we’ll send you a letter to let you know. We’ll also keep you updated on our progress until we have resolved your issue.

We will aim to resolve all complaints within 8 weeks.

• For existing agreements (before August 2024): Call 0121 667 7291 or email enquiries@offa.co.uk.
• For new agreements (from August 2024 onwards): Call 0808 281 6900 (UK) or 0141 726 3140 (outside the UK). Email BTL@services.offa.co.uk.

• For existing agreements (before August 2024): Call 0121 667 7291 or email enquiries@offa.co.uk.
• For new agreements (from August 2024 onwards): Call 0808 281 6900 (UK) or 0141 726 3140 (outside the UK). Email HPP@services.offa.co.uk.

• Phone support is available Monday to Friday, 9 AM to 5 PM.
• Email responses take up to 5 working days.

Offa takes your privacy seriously and protects your personal information. During the application process, we’ll need to ask for your personal and financial details. This is to:

1. Meet legal requirements, including verifying your identity.
2. Ensure the products you selected meets your personal needs and circumstances.
3. Make sure our financing criteria are met.

You can find full details about the information we need and how we use it in our Privacy Policy.

We do accept help from related persons and extended family members for the deposit on the property you’re buying.

However, we’ll need them to sign a gifted deposit letter. This letter confirms that the deposit is a gift and doesn’t need to be paid back, and that the giver doesn’t have any financial interest in the property.

No. We won’t accept unsecured loan money as a valid deposit.

We do accept these types of deposit funds:

• Savings
• Equity Release (like selling another property)
• Gifts or Gifted Equity
• Money from a Pension Pot
• Endowments or Shares
• Contribution from the builder (but it can’t be more than 5% of the purchase price)

Our conveyancers will need to confirm proof of your deposit before the purchase is finalised.

The minimum amount of deposit depends on the type of finance you need. Here’s a breakdown:

• Buy-to-Let (BTL) for New Build Properties: Minimum deposit 20% of the property’s value.
• Buy-to-Let (BTL) for Single Household Properties: Minimum deposit 20% of the property’s value.
• Buy-to-Let (BTL) for First Time Landlords: Minimum deposit 20% of the property’s value.
• Buy-to-Let (BTL) for Multi Household (HMO/MUB) or Short-term Let: Minimum deposit 25% of the property’s value.

You can use the buy-to-let calculator to see the rates and products available, and you can start an application whenever you’re ready.

We’ll need the following from you:

1. Personal details like your income, address, and some form of ID maybe required (passport, driving licence, or national ID card).
2. Information about the property you’re buying or refinancing, including its address and features.
3. If you’re applying through a limited company, we’ll need your company number. And one or more of the following SIC code:
   • 68100 – Buying and selling own real estate.
   • 68209 – Other letting & operating of own or leased real estate.
   • 68320 – Management of real estate on a fee or contract basis.

For the initial Decision in Principle application, you don’t need to provide any documents. However, when you’re ready to proceed with a full application, we may need to see documents to verify your earnings.

A BDM/Advisor from Offa or your Broker will discuss this with you to ensure all requirements are met.

For the initial Decision in Principle application, you don’t need to provide any documents. However, once you’re ready to proceed with advice and a formal application, we may need to verify your identity with certain documents.

Here are the documents we accept as proof of identity:

• Passport (UK or Non-UK)
• Photocard Driving Licence (UK – Full or Provisional)
• National Identity Card (EU)
• UK Biometric Residence Permit

For the initial Decision in Principle application, you don’t need to provide any documents. However, once you’re ready to proceed with advice and a formal application, we may need to verify your address using specific documents.

Here are the documents we accept as proof of address:

• Photocard or Old-Style Paper Driving Licence (UK – Full or Provisional)
• HM Revenue & Customs (Inland Revenue) Tax Notification
• Bank or building society bank statement
• Finance or Credit Card Statement
• Utility Bill (excluding electronic statements and mobile telephone bills)
• Council Tax Bill (must be dated within the last three months)

We appreciate that circumstances can change, and customers can find themselves in a position of financial difficulty through no fault of their own. If this is the case and as a result, you no longer feel that you’ll be able to make the agreed repayments, please get in touch. If you fail to make the agreed repayments and we’re unable to contact you or agree a suitable way forward, we may deem it appropriate to seek an order for possession of the property from the Court. 

We would only ever take this action as a last resort, after exhausting all available options to engage with you and support you with your payments.  

You may also wish to consider independent support, offered from a number of organisations, all of which are listed here: <Offa Signposting Webpage>. 

It’s important to advise also that your account may attract additional fees as a result of any missed payments, in line with our Tariff of Charges. Any charges applied to your account will be fully visible within your statement, however, should you have any queries about them, please contact us and we’ll be more than happy to discuss them. Click here to view and / or download the Tariff document for your records.

The first and most crucial step is to reach out to our customer support team as soon as possible. Early communication allows us to understand your situation and provide the most suitable assistance.

We review customer situations as needed to provide support.

Even if your property is empty, you still need to keep making your finance payments. Try to minimise the time it’s vacant. Also, make sure utilities and council tax are paid during these periods, and let your insurance provider know when the property is unoccupied.

Of course, you can apply together with up to 2 people on an individual application. 

If you’re applying through a Limited company (SPV), up to 4 people can be involved in the application.

We need to ensure that we have the most up-to-date information about your personal details and financial situation.

We understand that circumstances can change during the application process. If this happens, please contact your BDM/Advisor or Broker as soon as possible to discuss the changes.

Your Decision in Principle (DIP) is valid for 90 days.

If your income, expenses, or deposit amount changes, or if your DIP expires, please contact us for an updated document.

Our goal is to make your experience as smooth as possible, but if something goes wrong, please let us know and we’ll fix it.

For more details on how we handle complaints, click here.

SVR stands for ‘standard variable rate’

After the Initial Fixed Period, your monthly rent payments will be reviewed and fixed every quarter based on our current Standard Variable Rate. 

We’ll let you know 30 days before and offer options to switch products if available.

Our offers typically last for 90 days. If you need more time, we might be able to extend it, but we can’t guarantee this. If you have questions or need an extension, reach out to your Offa BDM/advisor or your Broker.

To secure the finance product you want, you’ll need to finish your application. Your chosen finance product is only secured after you’ve submitted your application.

No. You’ll need to provide the full address of the property you want to buy. This helps us run checks and value the property so we can give you a finance offer.

If you haven’t found a property yet but want to know how much we can offer, you can get a Decision in Principle (DIP). Then, once you find a property, you can continue with a full application.

The minimum property value for our Buy to Let Home Purchase Plan (BTL HPP) finance is £80,000.

For ex-local authority flats and maisonettes, it’s £100,000. 

Additionally, the minimum finance amount we offer is £60,000.

Yes! You can refinance your current buy-to-let plan. Depending on your finance to-value, you can also access more equity from your property, up to 80% of its value, as long as you meet our eligibility requirements.

We accept the following:

• Freehold: We accept freehold properties for houses. However, individual flats are not considered. Note: Freehold blocks of flats can be considered for commercial purposes.
• Leasehold: We accept leasehold properties if the lease has at least 70 years left when you apply. If you’re financing to extend the lease, we can accept this as long as it’s done at the same time as the loan is finalised.
• Flying Freeholds: We consider flying freeholds as long as they don’t make up more than 10% of the total area. The valuer will confirm the percentage during the assessment.

To be eligible for finance, you need to have indefinite leave to enter or remain in the UK, or a visa that falls under certain categories such as the EU Settlement Scheme, Family Visa, Skilled Worker Visa, etc. Your visa must have at least 12 months left before expiry when you provide proof for your application.

If you’re British and Irish dual citizens, this rule doesn’t apply to you.

Regarding residency, whether you’re applying as an individual or a director of a company, you must have been living in the UK continuously for at least 2 years before applying for buy-to-let financing.

Yes, you can apply. We may need to see when you’re planning to go back to work. Just reach out to us and we’ll guide you through the process.

Yes! We provide buy-to-let finance for new build properties to our customers.

We also offer tools like the buy-to-let calculator and rental income calculator to help you with your investment decisions.

We’ll look at the size and how long ago you got the CCJ to decide if we can offer you finance.

For all applicants on the finance:

• You can’t have any CCJs that you haven’t paid off.
• If you’ve paid off CCJs, we’ll consider up to £500 worth, as long as they happened in the last 36 months.

Yes, you can! Here’s how we consider your Limited Company Buy-to-Let application based on your shareholding:

• For companies: All directors with shares must be listed on the application. At least 75% of shareholders must apply for the Buy-to-Let.
• For partnership firms: All partners must be named on the application.
• For LLPs or other entities: All members must be listed on the application.

Also, make sure all applicants have the proper authoriszation from their board to proceed with the transaction.

And have with the following SIC codes: 68100, 68209, 68320

It shouldn’t be an issue, but we might need extra proof of income depending on your job change:

• Employed to Self-Employed: We’ll need at least 1 year’s tax return. If you’ve been self-employed for less than 2 years, we’ll also consider you if you can show you were in a similar job for at least 2 years before.
• Self-Employed to Employed: We’ll need your latest tax return and the most recent month’s payslip if you’ve been employed for less than 3 months.

You need to be at least 18 to get a buy-to-let offer from us. No maximum age, provided the finance proposition is self-sufficient and retirement income meets requirements.

Yes! You can have as many active accounts as you want, as long as the total amount doesn’t exceed £2.5 million.

No, we do not offer right to buy.

Yes, our portal gives intermediaries access – allowing them to submit business and
track cases. If you require help, please email us at brokerteam@offa.co.uk

We only offer finance for properties in England and Wales.

Please see our intermediaries page or contact us by email: brokerteam@offa.co.uk

Please contact us via email brokerteam@offa.co.uk or visit our intermediary section.

We are a finance house, fully regulated by the Financial Conduct Authority, providing
a wide range of Islamic finance products, but we are not a bank and do not offer
savings accounts.

Yes, we cater for British ex-pats purchasing or refinancing properties in England and
Wales. Please contact us for more information.

No, they are available to everyone and many non-Muslims are attracted by our
ethical finance products.

Please contact Offa with specific details of your proposed changes before
proceeding.

Visit our documents page to find out

With Offa, one solicitor represents both your interests and Offa’s for conveyancing.
We have several solicitors on our panel and you can choose whichever one you
prefer.

Solicitors List

All of our products are Sharia-compliant, certified by Amanah Advisors led by Mufti
Faraz Adam.

Yes, we can provide you with a decision in principle. Enquire now

Sharia does not allow clauses in two contracts which make them interdependent on
each other, with a complicated outcome that is not Sharia-compliant. However, Offa’s
finance is based instead on two independent contracts, providing a straightforward
outcome for both parties.

Historically, Islamic finance has had a reputation of high pricing due to the available
funding options. This has now changed, and industry rates are even competing with
the conventional space. At Offa we are continually monitoring and reviewing our
rates to give customers the most competitive pricing we can provide.

Yes. Under the co-ownership agreement you have the right to ask Offa to transfer
the property either to yourself or a third party. You will be required to pay the
remaining balance to Offa under the agreement. If you are selling the property to a
third party, you must ensure that the selling price is sufficient to pay Offa the
remainder of the balance. The property will not be transferred unless all sums are
paid in full.

A rent-only product is a Sharia-compliant alternative to a conventional interest-only
mortgage where you only pay rent without acquiring a share of the property.

A rent plus acquisition product is a Sharia-compliant alternative to a conventional
repayment (capital & interest) mortgage where you also acquire a share of the
property.

Our Early Buyout Charges depend on the type of product. These have been
approved as Sharia-compliant by Amanah Advisors.

Our funding is a mixture of Sharia-compliant funds from our shareholders Gulf
Islamic Investments along with tier 1 institutions.

Offa, together with other Islamic finance providers, advertises rates for products so
that customers can compare the rates and charges to those of conventional banks. A
percentage simply means a proportion, so this is not an interest rate. Rather, it is a
rental rate.

It is important to understand that Sharia does not prohibit the use of benchmarking
as long as it is a commonly recognised and easily accessible benchmark. A
benchmark is an important tool in Islamic finance. Providers must ensure that their
products, and the prices that are charged, avoid uncertainty for the customer and are
consistent with the prices of the local market.

No. Since the property is purchased in partnership (customer and Offa) there is no
lending or borrowing involved. Instead of repaying a loan, you pay rent on the share
of the property that you do not own, so there is no interest involved and it remains
Sharia compliant.

The big difference is that there is no interest (riba). When you buy a property with a
conventional mortgage, a bank typically lends you the money and then charges
interest on that loan.

Offa’s Home Purchase Plan allows customers to buy a property following Islamic
finance ethical principles, where charging or paying interest is forbidden. Instead of
using interest, our HPP involves the Islamic finance principles of co-ownership-with-
leasing. The customer acquires the property in partnership with us and makes
monthly payments to increase their share, paying rent on the portion they do not yet
own.

At the end of the agreement, the customer owns the property outright, without ever
paying interest.

Also, Offa does not invest in industries considered harmful to society such as the
arms trade, animal testing, gambling, alcohol, or tobacco.

When purchasing or refinancing a property, certain legal work needs to be done.

We don’t handle this legal work ourselves, so we have a panel of solicitors who do it for us. You will need to choose a solicitor from our panel to represent you.

For a Offa solicitor quote, click here.

What is Independent Legal Advice?

Independent Legal Advice (ILA) is advice given by a solicitor who isn’t involved in setting up your finances.

Why do I need it?

ILA ensures you fully understand the risks and obligations of the loan before signing anything. The ILA solicitor will explain everything in simple terms. They will also sign a certificate confirming they gave you the advice and that you signed the document in their presence without any pressure from others.

You usually need to pay a fee for this advice, which covers the solicitor’s time and preparation. This isn’t just a formality; it’s a serious legal requirement to make sure you understand your future risks.

The most common payment method is paying monthly, by Direct Debit. If you’re not already paying by Direct Debit, please consider the benefits of this method, which ensures a safe and timely payment collection, with a guarantee that protects you and your money. 

• A monthly Direct Debit is one of the easiest, safest, and most reassuring ways of making your monthly repayment. Your monthly repayments are made automatically, so they are not overlooked – eliminating the risk of late payment fees and additional charges. 

• The Direct Debit Guarantee protects you and your money. It’s offered by all financial institutions that take part in the scheme. 

You can also make a direct bank transfer or set up a standing order. If you’d like to confirm the correct payment details based on your facility, please contact the team. Please note that If you pay by online transfer from your bank or building society on a weekend or bank holiday at the end of the month, your payment is not guaranteed to arrive in time to be credited to your account within the same month. To ensure we receive payment on time we recommend that you make payment no later than two business days before the end of the month in which it is due.

Yes. View our Tariff of Charges

• If you anticipate missing a payment, please contact the team as soon as possible. We know that talking about money can be tough, but we’re ready to help. So, if you’re worried about an upcoming payment, please get in touch
• If you’ve missed a payment, information relating to the payment history on your account may be passed to one or more independent credit reference agencies. This information may be used by other lenders and could affect your ability to borrow money or obtain credit in the future

Yes. Check your offer letter for specific terms.

Yes. Refer to your offer letter for details.

As per your Terms and Conditions, you can make extra acquisition of 10% payments per annum  towards the principal OR redeem your facility in full subject to early buy out charge. To find out more, or to request a redemption statement – please call us

If you want to change the bank account for your payments, you’ll need to fill out a new direct debit form.

Just remember, the bank account must be in your name and able to accept direct debits.

Yes, you can change your payment date to any date between the 1st and 28th of the month. However, a payment needs to be collected every month, so it has to be within the same month.

You can make an extra payment of up to 10% of the original finance amount within the first 12 months without paying any extra fees. We’ll let you know about any allowances for future years in your annual statements.

Yes, you can re-finance your facility – however this is subject to approval and current market conditions. Early buy out charges may apply. Please call the team and we can talk you through this step by step.

• Contact your advisor or our team
• Apply for the refinance facility
• Provide necessary documentation (e.g., income verification, credit check).
• Undergo an appraisal and underwriting process.
• Close on the new facility and pay off the existing finance.

Yes, but early buy-out charges may apply.

We will notify you via letter or phone to discuss your options.

Contact us, and we will guide the estate executors through the process.