Offa has launched a regulated Islamic home finance product promising offers within an hour, positioning it as faster than high street banks in a move the Birmingham-based fintech announced on Monday.

The company said its new Home Purchase Plan, the Sharia-compliant equivalent of a residential mortgage, can generate offers within 60 minutes depending on credit rating and risk criteria, using a paperless application process. Offa said the system relies on digital know your customer checks, automated income and expenditure verification, and an automated valuation model.

According to the Home Owners Alliance, conventional mortgage applications typically take between two and four weeks to process. Offa said its accelerated turnaround compares favourably with that timeframe and marks the first new regulated Home Purchase Plan to be launched in more than seven years.

Sagheer Malik, chief commercial officer and managing director of home finance at Offa, said: “We are revolutionising the cumbersome world of Islamic finance – challenging and beating conventional high street banks on speed while also allowing family members to help with payments.”

Offa’s product includes what it described as the first Sharia-compliant “Family Assist” feature, allowing relatives to be added to a finance plan to boost affordability while the primary customer remains the sole legal owner of the property. The firm said customers can borrow up to seven times income, subject to affordability and underwriting criteria, with a minimum 5 per cent deposit.

The company said the plan also accommodates “gifted equity”, enabling buyers to purchase property from family members below market value while using the full valuation for finance purposes, potentially removing the need for a deposit.

Under the structure, customers enter into a co-ownership arrangement with Offa and make monthly payments to increase their share in the property, rather than paying interest, which is prohibited under Islamic finance principles. Offa said its model avoids investment in sectors such as arms, gambling, alcohol and tobacco.

The Financial Conduct Authority authorised Offa last year to provide Home Purchase Plans to UK customers. The company recently acquired Bank of Ireland’s Alburaq Sharia-compliant home finance portfolio and has expanded into bridge and buy-to-let products, saying it now offers the widest range of Islamic property finance products in the UK.

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