• Mortgages are designed for people from the African diaspora and other foreign nationals in the UK who struggle to get home loans
• Products could support any borrower struggling to get a mortgage because of their circumstances such as the self-employed
A newly launched bank aimed at addressing the needs of underserved communities—including individuals from the African diaspora and foreign nationals living in the UK—has been granted full authorisation by both the PRA and the FCA to begin operating.
Afin Bank is entering the market with a mission to improve access to home financing for those who have traditionally faced barriers from mainstream institutions. Afin Bank will offer a range of residential and buy-to-let mortgages designed for people with an overseas passport and a valid visa to work in the UK who are often underserved by bigger banks because of circumstances such as their visa status or lack of UK credit history.
By focusing on inclusivity, the bank seeks to fill a critical gap in the mortgage market—offering tailored solutions for groups like self-employed individuals or recent arrivals who may not fit conventional lending profiles.
The lender says that while designed with people from diaspora communities in mind, its mortgages may also be suitable for all borrowers struggling to get a mortgage because of their circumstances, such as the self-employed and professionals. Mortgages will be available for properties in England and Wales.
Afin Bank’s range includes a mortgage for first time buyers, a home movers’ mortgage, a remortgage product and a buy-to-let mortgage for people wanting to invest in the UK property market. All Afin Bank products will be available as fixed rate or flexible tracker mortgages, and the BTL mortgages will also be available to those clients who don’t currently own any UK property. Afin Bank’s mortgages will be available for properties in England and Wales.
The bank’s CEO, Jason Oakley, said that many people from diaspora communities are effectively facing financial exclusion. He explained: “We know from our own research* that 87% of Africans living in the UK say they have been turned down for a mortgage, with 41% believing this was due to their visa status and 30% believing they were rejected because of a lack of UK credit history.
“The problem is that so many mainstream lenders have highly automated processes that can’t deal with the circumstances that the African diaspora and other foreign nationals face, such as their visa or credit status, so they end up being rejected. However, many of these borrowers have great jobs or their own businesses, with good earning potential. Afin Bank will take a pragmatic approach to these factors to understand a borrower’s situation and try to help them get a mortgage so they can finally have a home of their own.”
The inspiration for a “diaspora bank” came from the experiences of Africans living in the UK, often in well-paid professional roles, who were unable to put down roots because they could not get a mortgage from mainstream lenders.
The bank’s mortgages have been designed to help borrowers overcome these barriers, as well as other challenges they might face from a high street lender, including:
- Applications are accepted from clients originating from anywhere in the world
- Afin Bank will consider customers with a minimum UK residency of just six months
- Flexible criteria around accepting deposits from overseas, subject to anti-money laundering checks
The bank says similar challenges are also faced by millions of UK borrowers who do not fit the standard tick box approach of many big lenders, such as the self-employed.
Alan Davison, Chief Commercial Officer for Afin Bank, explained: “Afin Bank will treat its customers as people who need help overcoming obstacles, whether it’s their visa status because they come from overseas, or the fact they are self-employed. Our focus is on helping more underserved borrowers get a home of their own.
“The feedback from brokers and customers as we have been building Afin Bank has been fantastic, so I am delighted that we have received our full approval in less than nine months and we can now start lending, helping people to move home, get the mortgage deal they deserve or get on the housing ladder for the first time.”
Afin Bank offers its mortgages through brokers and via an innovative Community Ambassadors Programme where people in diaspora communities will introduce friends, family and contacts to Afin Bank’s in-house mortgage advisors.
Afin Bank is backed by parent company WAICA Reinsurance Corporation Plc (WAICA Re), one of the largest reinsurance companies in Africa, which has committed £62m to launch the bank. The bank it has reached full launch in less than nine months after receiving its Authorisation with Restrictions (AwR) in October last year.
Having launched its mortgage proposition, Afin Bank will also unveil a range of FSCS protected savings accounts for all UK based savers in the coming weeks.
For more information about Afin Bank visit www.afinbank.com follow it on LinkedIn and @AfinBankUK on X and Instagram.
