A new bank created to support people from Africa living and working in the UK has been granted its banking licence.

Afin Bank will help people from Africa who find it difficult to get mortgages because of their nationality, visa status or lack of credit history in the UK.

The bank has been backed with £60m by parent company, WAICA Reinsurance Corporation (WAICA Re), one of the largest reinsurance companies in Africa.

As a specialist lender, Afin Bank’s products will also suit a broad spectrum of non-standard customers, such as high net worth borrowers, professionals and self-employed people, who struggle to get a mortgage through mainstream providers.

The bank is aiming to start lending next year through intermediaries, as well as via a digital app, offering residential and buy-to-let (BTL) mortgages to people living in England and Wales, as well as BTL mortgages for borrowers based overseas in the West African countries of Ghana, Sierra Leone and Gambia investing in the UK property market.

Afin Bank’s CEO is Jason Oakley, who co-founded SME lender Recognise Bank in 2021, while Alan Davison, formerly distribution director at Together Personal Finance, will take the role of COO.

Davison said: “Not only is this an important milestone for Afin Bank, it is also great news for under-served customers who are not being supported by mainstream lenders.

“While there are some BTL products available to non-UK nationals, there are very few residential mortgages designed for foreign nationals looking to buy their own home. Borrowers are usually considered by most banks simply on credit appetite, rather than being offered products that suit their needs.

“Afin Bank’s credit underwriting will be tuned to our customers’ circumstances, ensuring common-sense decisions, quick service and certainty for the borrower and their intermediary, for both residential and BTL lending.”

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