Islamic bank Offa has launched a residential mortgage equivalent, a home purchase plan (HPP).

Previously Offa offered buy-to-let, bridging and bridge-to-let.

Offa claims its HPP will allow offers within an hour, depending on credit rating and risk criteria.

Offa’s HPP lets customers add family members to their finance plan, helping them get more finance than they otherwise could while remaining the sole owner of the property.

Customers can also take advantage of “gifted equity” where they can buy a property at an under-value price from family members.

Offa then uses the full value for finance purposes, entirely avoiding the need for a deposit.

The HPP has a minimum 5% deposit, up to 7x income being accepted, subject to affordability and underwriting criteria, and family members can help with payments.

Instead of using interest, Offa’s HPP involves the Islamic finance principles of co-ownership-with-leasing.

Customers acquire the property in partnership with Offa and make monthly payments to increase their share, over time owning it.

Offa chief commercial officer and managing director of home finance Sagheer Malik, 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.

“For too long, Muslims seeking property finance that adheres to their faith have had to suffer slow finance decisions and mountains of paperwork. All that has changed today, because we are providing a truly modern sharia-compliant product with a paperless application process and ultra-quick decisions. It will also appeal to non-Muslims who favour ethical finance.”