A company is offering Sharia-compliant bridging finance for property investors.
Sharia compliance in the finance world means for savers and borrowers, instead of paying an annual equivalent rate of interest, there is the payment of an ‘Expected Profit Rate’ (EPR).
Offa provides Sharia-compliant residential and commercial bridging facilities to UK residents, expats and international clients based overseas and finances individuals, sole traders, partnerships, limited companies, LLPs as well as on and offshore Special Purpose Vehicles.
According to Offa, increasingly property investors are seeking an alternative to the high street and there is growing demand for Sharia-compliant finance.
Company chairman Sultan Choudhury says: “The UK’s Muslim population is significant at currently 3.4m and will continue to increase and so we feel this is a high growth market with a long-term future.
“With Offa, we’ve set out to extend its reach into bridging and other specialist forms of finance, which are as yet untapped. We are in advanced talks with other financial institutions for considerably more funds to accommodate the expected strong demand for the UK’s first Shariah-compliant bridging loans.
“There are a lot of property investors in the UK market who will relish the chance to take out short-term finance that is consistent with Islamic principles and brokers who can accommodate them will benefit from a strong new revenue channel with considerable long-term potential.
“In the near future, we will be launching a refurbishment, stretched development, planning and shared risk finance facility (a Sharia-compliant equivalent of a Joint Venture). Sharia-compliant finance is now an established and trusted part of the mainstream UK financial services landscape, used by Muslims and non-Muslims alike.”