Afin Bank to help “financially excluded” borrowers in UK diaspora communities

• New specialist lender gets full approval to offer residential and BTL mortgages

• Mortgages are designed for people from the African diaspora and other foreign nationals in the UK who struggle to get mortgages

A new bank created to support people from the African diaspora and other foreign nationals in the UK, who can struggle to get a mortgage from mainstream lenders, has been given full approval by the financial regulators the PRA and the FCA.

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.

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.

The idea for a “diaspora bank” came from the experiences of Africans living in the UK, often in well-paid professional roles in finance, law and health, who were unable to put down roots because they could not get a mortgage. That idea became Afin Bank, which is backed by parent company WAICA Reinsurance Corporation Plc (WAICA Re), one of the largest reinsurance companies in Africa, with a commitment of £62m to launch the bank.

The bank’s CEO, Jason Oakley, said that many people from diaspora communities are effectively facing financial exclusion. He explained: “Our research* found 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.”

Alan Davison, Chief Commercial Officer for Afin Bank, added: “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.”

The bank’s mortgages have been designed to help borrowers overcome the barriers they might face from a mainstream 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
• Capital raising is allowed for debt consolidation, property investment, business purposes and tax bills

The bank says that many borrowers face challenges getting a mortgage because they do not fit the standard “tick box” approach of many big lenders.

James Briggs, Intermediary Sales Director for Afin Bank, said: “There are millions of borrowers who can find it hard to get a mortgage from a mainstream lender, perhaps because they’re self-employed and their current income does not reflect their previous years’ accounts or they have multiple income streams, or because they don’t have an established UK credit history.

“But they have important jobs with great income potential or are creating businesses; the kind of people the UK economy needs now, so they deserve to be supported.

“The human touch is at the heart of Afin Bank. Our focus is on understanding the customer’s needs, making commonsense decisions to offer them the most suitable mortgage. We will work closely with brokers and borrowers, using technology to bring speed, efficiency and certainty to our customer service and lending decisions.”

Afin Bank will offer 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 has received full approval less than nine months after securing its banking licence Authorisation with Restrictions (AwR) in October 2024. Katrina Arnold, Chair of Afin Bank, said: “Reaching this milestone is a testament to the passion and expertise of everybody involved in building Afin Bank and our strong working relationship with the FCA and the PRA.

“Importantly it is proof of the need for a bank that not only serves the requirements of millions of underserved customers, but also a bank that understands their circumstances and wants to help them buy a home.”

Ezekiel Ekundayo, GCEO of parent company WAICA Re, added: “This is an exciting moment in the journey to create a truly unique bank for diaspora communities in the UK. For people from Africa and so many other countries around the world, being able to properly put down roots in the UK, a place they call home, is life changing.

“I am so proud that Afin Bank will play a vital role in making this happen and will hopefully be building strong relationships with customers for years to come.”

In addition to residential and buy-to-let mortgages Afin Bank will also be launching 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.

ENDS

Contact Paul Beadle: email Paul.Beadle@afinbank.com or mobile 07801 105001

Notes to editors

* Nearly nine in ten Africans in the UK say they have been turned down for a mortgage

Afin Bank is a new bank designed to help some of the UK’s most underserved customers, such as diaspora communities living and working in the UK, or borrowers like the self-employed.

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