With the arrival of Ramadan, a period often marked by reflection, generosity and collective responsibility, Islamic home finance provider Offa has unveiled a new Home Purchase Plan (HPP) aimed at Muslim families seeking to enter the property market without compromising their faith.
The product, which is structured as a Sharia-compliant alternative to a conventional mortgage, places particular emphasis on family-backed homeownership – a long-standing practice in many British Muslim households.
Under the model, customers enter into a co-ownership arrangement with Offa. Instead of paying interest, which is prohibited in Islamic finance, buyers gradually acquire a larger share of the property through monthly payments. Over time, they assume full ownership.
Central to the offering is a “Family Assist” feature, allowing multiple relatives to contribute financially towards a purchase while legal ownership remains with the main applicant or applicants. The move formalises arrangements that are often informal within extended families, where parents or siblings support first-time buyers with deposits or repayments.
The launch comes amid continued affordability pressures in the housing market, with rising property prices and tighter lending criteria presenting barriers for many aspiring homeowners. For faith-conscious buyers, options are further limited by the prohibition on interest-based borrowing.
Offa says its digital application system is designed to accelerate decision-making, with offers potentially issued within an hour, subject to credit and risk assessments. By comparison, industry estimates suggest conventional mortgage approvals can take several weeks.
The HPP also incorporates provisions such as “gifted equity”, enabling buyers to purchase property from family members below market value while financing is assessed against the full valuation, potentially removing the need for a traditional cash deposit. A minimum five per cent deposit is required in standard cases, with lending of up to seven times income considered, subject to affordability checks.
Sagheer Malik, Chief Commercial Officer and Managing Director of Home Finance at Offa, said the initiative reflects cultural realities often overlooked by mainstream lenders.
“Homeownership in our communities has rarely been an individual journey,” he said. “Family support has always played a central role. Our aim is to provide a regulated, transparent framework that aligns with Islamic principles while meeting modern expectations around speed and accessibility.”
Islamic finance models typically operate on asset-backed or partnership structures and avoid investment in sectors such as gambling, alcohol, tobacco and arms.
Offa was authorised last year by the Financial Conduct Authority to provide Home Purchase Plans in the UK, positioning it within a small but growing market of regulated Islamic finance providers responding to demand from Britain’s Muslim population.
With housing affordability remaining a national concern, faith-aligned financial products are increasingly viewed not simply as niche offerings, but as part of a broader conversation about inclusion, accessibility and ethical banking in the UK property market.
