Marvin OnumonuOver half (56%) of Africans workers said they felt excluded from financial services because of the difficulties getting a mortgage, research by Afin Bank found.
A third (32%) of those surveyed said not being able to buy a home could make them want to leave the UK.
Tippie Malgwi, head of diaspora banking for Afin Bank, said: “These are people working in the UK, usually in important sectors such as healthcare or in well-paying professionals roles, but are effectively being excluded from getting a mortgage because they don’t fit the rigid criteria that many mainstream lenders apply.
“For example, some lenders demand that applicants have a longer period of time left on their visas, or they reject applicants because they don’t have several years of UK credit history.
“Some borrowers apply for a mortgage with a significant deposit, but are rejected because some of the money comes from their home country or is gifted by family.”
Nearly a quarter (22%) of those surveyed said they were concerned about being rejected due to nationality or lack of UK credit history.
Some 16% were worried about being turned down because of visa status, 19% were concerned about using overseas or gifted funds for a deposit, and 15% said they might be rejected for having non-standard income.
A third (34%) of African nationals surveyed said the mortgage challenges would put off skilled people from coming to the UK.
Despite these difficulties, 38% of respondents said they had a mortgage, but 53% of those said it was difficult to obtain.
About a quarter (24%) planned to apply for a mortgage in the next 18 months and 23% intended to remortgage.
One in five (20%) had applied in the last 18 months, while 15% had been turned down in the past.
Malgwi said: “These are people doing important jobs, supporting the economy and wanting to create wealth by buying their own homes.
“But our research shows that a lot of people clearly do not feel welcome because they can’t get a mortgage.
“They are being forced to rent, costing them more money each month, with little hope of getting on the housing ladder.”
Malgwi added: “That is why Afin Bank was created as we know the demand is there from foreign nationals.
“It is our mission to help them get a mortgage to show them that they are valued and welcome in the UK.”
