New lender targets underserved borrowers, including diaspora and self-employed
Afin Bank has begun offering a suite of residential and buy-to-let mortgages aimed at borrowers who often face barriers with mainstream lenders, following full regulatory approval from the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).
The bank, which is backed by WAICA Reinsurance Corporation, seeks to address the needs of individuals from the African diaspora and other foreign nationals living and working in the UK.
The product range includes options for first-time buyers, home movers, remortgages, and buy-to-let investors. Both fixed rate and tracker mortgages are available, and buy-to-let products can be accessed by clients who do not currently own property in the UK. The bank’s mortgages are available for properties located in England and Wales.
“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,” said Alan Davison (pictured), chief commercial officer at Afin Bank. “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 formation was influenced by the experiences of African professionals in the UK who, despite stable employment, found it difficult to obtain mortgages from established banks. Research commissioned by Afin Bank indicated that 87% of Africans in the UK reported being declined for a mortgage, with 41% attributing this to their visa status and 30% to a lack of UK credit history.
Afin Bank’s lending criteria allow for applications from clients worldwide, consideration of applicants with as little as six months’ UK residency, and acceptance of overseas deposits subject to anti-money laundering checks. The bank also permits capital raising for purposes such as debt consolidation, property investment, business needs, and tax payments.
The bank achieved its full launch less than nine months after receiving its Authorisation with Restrictions in October last year. The lender is introducing its mortgages through brokers and a Community Ambassadors Programme, which will see members of diaspora communities refer contacts to Afin Bank’s mortgage advisors.
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