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A Complete Guide to Mortgages on the Isle of Man

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Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: November 11, 2021

Getting a mortgage on the Isle of Man could be seen as a tricky endeavour, but with the right advice, it is far simpler than you might think.

Although there are certain requirements you’ll need to meet to qualify for a mortgage over there, we’ve outlined them for you in our guide below.

Can you get a mortgage on the Isle of Man?

Yes. It’s possible to get a mortgage on the Isle of Man, but there are a few requirements you’ll need to meet to qualify for one…

  • You were born on the island
  • Have been a resident for at least five years
  • Are married to an Isle of Man worker

However, you can also get a mortgage in the territory if you’ve received full-time education during residence and remained afterwards, or by having a Manx-born parent who spent the first five years of their life on the island.

Despite the additional requirements needed to get a mortgage on the island, once you have met one of the above conditions the rest of the application process is mostly the same as on the UK mainland. You can read about the general eligibility criteria for a UK mortgage in our complete guide to mortgage applications.

Speaking to a mortgage broker before you apply is highly recommended. Only a handful of mortgage providers will lend in the Isle of Man, so it can be difficult to find a deal that fits your needs and requirements without professional advice.

How much mortgage deposit you’ll need

For customers looking to purchase a property on the island, a minimum 5% deposit is required on any mortgage, although most lenders prefer customers who can put down 10% or more, plus putting down more than the minimum will boost your chances of landing a favourable interest rate.

Support for first-time buyers

There are two schemes available to help with your purchase…

  • First Home Fixed: Applies to first-time buyers and buy-back properties
  • First Home Choice: For properties purchased on the open market.

To access these schemes you need to have been an Isle of Man resident for at least five years and be a current resident at the time of application. You won’t qualify if you already own a property on the island, or anywhere else.

The schemes provide assistance in the form of an equity loan, to a maximum of 30% of the purchase price.

How to get a mortgage on the Isle of Man

In order for you to get a mortgage on the Isle of Man you must first obtain a mortgage decision in principle.

This can be done by contacting a mortgage broker and asking for them to arrange the decision in principle with a lender on your behalf as an advocate.

Finding a broker is a highly recommended step in the process, as they will act as an intermediary between you and the lender. They will make sure you’re introduced to the right lender, negotiate the best deal with them on your behalf and help you with your paperwork throughout the process.

The next steps

Your mortgage broker will guide you through the process from here, offering bespoke advice up to completion.

Here are the steps they’ll take you through…

  1. After you’ve received your decision in principle, your legal adviser will be able to give you the full details of the costs associated with the purchase. For instance, search fees and the Land Registry’s charge for registering your ownership.
  2. Following this, you will need to contact a solicitor and request that they act on your behalf.
  3. Once you’ve had an offer accepted on a property, your solicitor will assist you with the legal side of the process and lead you to completion.
  4. In order to put down a deposit for a mortgage on the Isle of Man, you will need an advocate to purchase the property on your behalf.
  5. When requesting a conveyance quotation from an advocate they will provide you with a figure that includes their own fees, the property, utility and land searches and the government registration fee, the Isle of Man version of UK stamp duty.

Tax relief

Mortgages on the Isle of Man must be arranged through a company based on the island, and therefore must deal with the local subsidiaries of the larger UK banks and building societies, or a local lender.

This allows Manx residents to claim an element of tax relief on the mortgage interest that the company pays, making borrowing against your property a very tax-efficient process. This tax relief also applies to any personal or unsecured lending arranged via companies on the island.

On the island, there is also no capital gains tax, wealth tax or death duty payable.

As well as this, lending on the island tends to be more generous than on the mainland, with some lenders offering mortgages based on up to six times income.

The main reasons for this are the lower tax rates that Manx residents pay and the additional benefit of tax relief that is receivable against mortgage interest.

Which lenders offer mortgages on the Isle of Man?

Lenders who offer mortgages on the Isle of Man include the Isle of Man Bank, Barclays and HSBC. There are far fewer approachable mortgage providers for this territory compared to the UK mainland, which makes it more difficult to find a suitable deal without professional advice, but the good news is that help is available.

The best option would be to go to a mortgage broker as they will be able to help you secure the best possible mortgage for your needs and circumstances.

A broker will be able to call on their working relationship with the select lenders who offer mortgages on the Isle of Man in order to provide you with a range of products within the territory. Moreover, they can negotiate the most favourable rates with the lender who’s best positioned to help you, and might even save you time, money and potential marks on your credit report in the process.

Get matched with an Isle of Man mortgage advisor today

If you’re interested in purchasing a property on the Isle of Man, then the best course of action is to contact a mortgage broker to assess your options.

The right mortgage broker will be able to find the best rate combined with the ideal lender for you, and guide you through your application from start to finish. Finding the right broker is often the tricky part, but we can help you with that.

We offer a free broker-matching service that will take your needs and circumstances into account to pair you up with the mortgage advisor who’s best placed to help you. This will be someone with a wealth of experience in the Isle of Man market and a strong track record helping customers just like you.

To access this free, no-obligation service, call 0808 189 2301 or make an enquiry and we will set up a chat between you and your perfect broker today.

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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