The majority (87%) of Africans living and working in the UK have been turned down for a mortgage because of circumstances relating to the fact that they are a foreign national, according to research from Afin Bank.
Almost half (48%) said they were turned down because of their visa status, while 41% said they were declined because of their nationality.
Just under a third (30%) said they were rejected due to a lack of credit history in the UK and 28% said the lender would not accept their passport.
A further 28% said the lender would not accept their proof of funds.
A quarter said they had already been told by the bank they had their current account with that they would not be considered for a mortgage.
Even of those that had successfully applied for a mortgage, a quarter (25%) said they had found the application process difficult.
Nine out of ten (92%) respondents told Afin Bank that they felt African Nationals are underserved when it comes to mortgages and financial services in the UK.
Alan Davison, chief commercial officer for Afin Bank, said: “There are more than 1.5 million African nationals living in the UK, contributing to our economy, running businesses and building vibrant communities.
“Yet most of them are struggling to put down roots in this country and buy their own home because mainstream lenders are not able to support their needs.”
He said: “Afin Bank was created out of the experiences of Africans unable to get support from UK financial services providers and our research shows that this is still very much the case.
“We understand the circumstances of African nationals and other foreign diaspora in the UK, so our proposition will take into consideration factors such as credit history and visa status to be able to help families get the mortgages they need.”
Afin Bank’s findings resonate with members of the African diaspora in the UK, such as Ezikpe Kalu, managing director of Diffstone Property, a real estate development and investment business based in the North West.
Kalu comes from Nigeria originally and has been living and working in the UK for 18 years.
He said: “As a British Nigerian, I know firsthand how complex and frustrating it can be to access mortgage finance, especially when your background doesn’t quite fit the system. When I applied for my first mortgage, despite stable employment and strong income, I felt I still had to prove I belonged.
“Years later, not much has changed. I speak with professionals such as nurses, engineers and business owners who are more than mortgage-ready but are still being overlooked. Afin Bank brings a refreshing, culturally aware approach to lending.
“For many, it represents more than a mortgage. It is a real chance for many to finally put down roots.”
