Landmark deal marks first ever sale of Islamic home finance portfolio in the UK
Offa, an Islamic property finance fintech, has purchased Bank of Ireland’s Alburaq Sharia-compliant home finance portfolio in a deal that includes more than 350 home purchase plans.
The acquisition marks the first time an Islamic home finance portfolio has been sold in the UK. Offa created a specialised Sharia-compliant funding structure to facilitate the acquisition, minimising potential legal and tax complexities.
Alburaq, one of the UK’s earliest Sharia-compliant home finance offerings, was launched nearly two decades ago. Offa executives, some of whom were involved in distributing Alburaq’s products in the early years, described the acquisition as a homecoming for many of the customers.
“It is testament to Offa’s abilities that Bank of Ireland has agreed to sell their Islamic home finance portfolio to us,” said Amir Firdaus (pictured), chief financial officer at Offa. “This marks another chapter in Offa’s ambitious growth plans.”
Firdaus added that customers transitioning to Offa will benefit from expanded Sharia-compliant refinancing options and pledged a smooth migration to Offa’s servicing platform.
Offa’s latest move follows the launch of its Sharia-compliant buy-to-let product in July. Designed to streamline processes in Islamic finance, the product offers a paperless application system and quick funding decisions. The BTL financing model employs Islamic principles of co-ownership with leasing rather than traditional interest-based lending. Customers gradually acquire full ownership of the property through monthly payments.
The fintech has secured £230 million in Sharia-compliant funding to support its BTL offering, enabling it to scale operations and expand its product range within the UK property market.
Offa’s ethical finance model adheres to Islamic principles, prohibiting interest and avoiding investments in industries such as alcohol, tobacco, and weapons.
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