Thanks for all your response. It just doesn't make sense with this day and age.. even if you have an advanced degree from a well-known institution outside the UK, that's still not enough, and they would rather go with someone who is born and brought up in the UK with UK education. It just feels so backwards.
You get the same results, and the feedback is either you are over-qualified or under qualified, and they don't seem to understand that it's not easy to find the perfect candidate.