The Intermediary – February 2025 - Flipbook - Page 43
I N P RO F I L E
The struggle is not just about getting a mortgage
– it starts even earlier.
Briggs explains: “If a landlord has four tenants
to choose from, and you have only been living in
the UK for six or nine months with next to no track
record – it’s a real challenge.”
This makes it even harder to save for a
deposit, trapping many in a system that prevents
homeownership. Afin Bank’s goal is to provide a
genuine pathway to financial stability.
Market gaps
Afin Bank is also tackling self-employed borrowers
and those with irregular income streams.
“It’s all about understanding where the gaps are
in the current propositions,” notes Briggs.
With around 16% of the UK workforce now
self-employed, the demand for lending solutions
that accommodate fluctuating incomes is only
increasing. Nevertheless, traditional lenders
continue to impose rigid criteria that create
significant barriers.
He says: “Often, self-employed borrowers face
challenges around consistency of income. Some
lenders want evidence of two or three years
of accounts – and many won’t even consider
forecasted income.”
This outdated approach leaves many
self-employed individuals locked out of
homeownership.
“Self-employed people are greatly needed in
the UK economy,” Briggs adds. “Many employed
people are ultimately employed because there are
self-employed people out there.”
The same challenges extend to others in
the market, such as freelancers and those
in temporary roles, who may have extensive
experience in their fields but struggle to meet
conventional lending criteria.
“It should be about the client’s experience,
not necessarily just looking at their current
commissions,” Briggs argues.
While embracing fintech to streamline
processes, Afin Bank plans to take a different
approach, adopting a manual underwriting model
to accurately assess each client’s needs.
“We will always take a manual underwriting
approach in handling our clients’ unique
circumstances,” says Briggs.
Afin aims to ensure that self-employed
borrowers and those with non-traditional income
streams have access to the mortgage products
they need – “without unnecessary obstacles.”
Supporting brokers
Afin Bank is clear that building strong relationships
with brokers will be key to its success, with a plan
for integrating into the market upon launch.
“We will have a phased approach to our
distribution when we launch, which hopefully will
be mid-2025,” he explains.
“We will have our panel partners, working with a
couple of the clubs and networks upon launch.”
Rather than one-size-fits-all, Afin is committed
to ensuring brokers have the flexibility to work in a
way that suits their business.
“We’re not going to force people down a path
that is not suitable for their business,” Briggs adds.
In fact, Afin plans to open distribution to
both directly authorised (DA) and appointed
representative (AR) brokers in stages, ensuring
that service levels remain high.
Briggs says: “We have to be mindful of the
service we offer to our intermediary partners – we
want to get that right.”
Given the bank’s expected business mix –
weighted towards residential mortgages, with
a high proportion of purchase transactions –
efficiency will be a top priority.
“Being able to very quickly be nimble and give
quick decisions to our intermediary partners
is really important to those kinds of clients,”
Briggs notes.
To further strengthen its broker relationships,
the bank is also investing in a dedicated
intermediary experience team, “with the goal of
supporting intermediaries face-to-face.”
The bank’s offerings will include residential and
buy-to-let (BTL) mortgages. They are in the final
stages of development, but will offer fixed rates at
various loan-to-values (LTVs), including high LTVs
for purchase transactions, to help first-time buyers
and those struggling to secure financing.
Briggs says: “On the BTL side, we will be
supporting landlords through our consumer buyto-let position, and we will also have an overseas
buy-to-let, targeted at clients in certain countries,
not just in the UK.”
Long-term ambition
Afin Bank may be launching with a focused
proposition, but its ambitions stretch far.
“We are really ambitious as a bank, and this is
just our launch position,” Briggs notes.
“We believe our proposition will appeal to other
diaspora communities – people living and working
in the UK from other parts of the world that are
also underserved.”
While the bank’s immediate focus is on
establishing its presence and refining its core
offering, its long-term vision is clear.
“There’s lots to come – our proposition will grow
as we are very ambitious,” Briggs concludes.
“But right now, these are our building stages
and our launch, we are very excited for what is
to come.” ●
February 2025 | The Intermediary
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