A new study by specialist lender Afin Bank has revealed that 87% of African nationals living and working in the UK have been turned down for a mortgage due to factors linked to their foreign national status — with visa status, nationality and lack of UK credit history among the most frequently cited reasons.

The research, based on a survey of 500 members of the UK’s African diaspora, paints a stark picture of the challenges faced by borrowers trying to access finance in the mainstream market. Nearly half (48%) said their mortgage application had been rejected because of their visa status, while two in five (41%) were refused due to their nationality. A lack of UK credit history was cited by 30% of those turned down, and 28% said lenders would not accept their passport or proof of funds.

Afin Bank says these findings are reflected in wider sentiment: 92% of respondents believe that African nationals are underserved by mortgage lenders and financial services providers in the UK. Among those who have never applied for a mortgage, concerns around visa status, nationality or poor credit history were among the top reasons for hesitating. A quarter said they had been pre-emptively told by their own current account provider that they would not be considered for a mortgage.

Even for those who did manage to secure a loan, the process was far from straightforward. One in four successful applicants described the experience as difficult.

Despite these barriers, the appetite for homeownership within the community is clear. Some 41% of respondents currently hold a mortgage, while 38% have applied for one in the past 18 months. Looking ahead, 36% plan to apply in the next 18 months, and 31% expect to remortgage.

Alan Davison, chief commercial officer at Afin Bank, said the findings underline the need for a lender that understands the particular circumstances of this customer base. “There are more than 1.5 million African nationals living in the UK, contributing to our economy, running businesses and building vibrant communities,” he said. “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.

“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.”

Among those lending their voice to the findings is Ezikpe Kalu, managing director of Diffstone Property, a real estate development and investment firm based in the North West. Originally from Nigeria, Kalu has lived and worked in the UK for 18 years.

“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,” he said. “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.”

Afin Bank was granted its Authorisation with Restrictions (AwR) by the UK regulators in October 2024. It is backed by WAICA Re, the African reinsurance group, which has committed £62 million to the bank’s set-up. A full market launch is expected later this year.

Initially focusing on residential and buy-to-let mortgages for UK-based and some overseas borrowers, the bank also intends to offer FSCS-protected savings products. While developed with African and other foreign national customers in mind, Afin Bank says its products will also be open to a wider base of UK residents, including self-employed and high-net-worth professionals.