Afin Bank has launched a range of residential and buy-to-let (BTL) mortgages designed to support the UK’s most underserved borrowers, after being given full approval by the financial regulators the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).
The new lender was created to support people from the African diaspora and other foreign nationals with an overseas passport and a valid visa to work in the UK, who can struggle to get a mortgage from mainstream lenders because of circumstances such as their visa status or lack of UK credit history.
The bank’s research found that almost nine out of 10 (87%) Africans in the UK said they have been turned down for a mortgage, with 41% believing this was due to their visa status and 30% believing it was because of a lack of UK credit history.
The bank says that many UK borrowers face similar challenges getting a mortgage because they do not fit the standard “tick box” approach of many big lenders.
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.
Afin Bank’s range includes mortgages for first-time buyers, home movers’, 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 buy-to-let 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.
Alan Davison (pictured), 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.”
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.”
