New Heter Iska agreement enables lender to offer compliant financing and expand market reach
Aspen Bridging has signed a Heter Iska agreement, enabling the lender to provide financing to Jewish property professionals for the first time.
The Heter Iska, authorised by Rabbi Eli Brief of the Union of Hebrew Congregations, restructures traditional loan agreements into investment partnerships that comply with Jewish law. Under this structure, instead of paying interest, the borrower and lender enter a partnership where the lender’s funds are treated as capital invested in the borrower’s venture. The borrower assumes the role of an active partner managing the business, while the lender shares in the profits or losses.
Aspen’s parent company, S&U Plc, has a longstanding Jewish shareholding, further reinforcing the significance of the move, which also expands the specialist lender’s market reach and aligns with its goal of achieving £250 million in lending by 2025. By adopting the structure, Aspen believes it has positioned itself to meet the needs of a previously untapped market segment while adhering to religious compliance standards.
“We are delighted to have signed this Heter Iska, which allows for us to engage with Jewish property investors and developers,” said Jack Coombs (pictured), managing director of Aspen Bridging. “We are excited to begin discussions with them and their broker community imminently. This is a milestone development for the business, opening up a whole new market of hugely prevalent property professionals.”
Brief, meanwhile, welcomed the lender’s inclusion in the growing list of Heter Iska-compliant finance providers.
“We very much welcome Aspen Bridging to the ever-increasing list of Heter Iska lenders and trust that this will lead to a mutually beneficial relationship with the members of our Jewish community,” he said.
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