fbpx Mortgages and Bad Credit: How to get a mortgage with Bad Credit Read more Chevron
Arrow Arrow
Scroll to top

A Complete Guide to Mortgages on the Isle of Wight

No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: September 23, 2021

If you’re looking to buy a property on the Isle of Wight, whether as a main residence, buy-to-let or second home, the good news is there’s plenty of local mortgage brokers we can introduce you to who can help guide you through the process.

There’s lots of great reasons why people decide to move to the Isle of Wight. It’s one of the sunniest places in the U.K, there’s miles and miles of gorgeous beaches to explore, great amenities, summer festivals and an altogether steadier pace of life.

Can you get a mortgage to buy a property on the Isle of Wight?

Yes, it’s certainly possible. With the exception of a small number of mainly provincial banks and building societies, most U.K mortgage lenders (including high street ones) are more than happy to consider lending on properties on the Isle of Wight.

It’s important to remember, just because the Isle of Wight is an island it’s still a part of England. Formerly part of Hampshire, it’s been a county in its own right since 1890. The process for buying a house on the Isle of Wight, and getting a mortgage to fund it, is exactly the same as the rest of the country.

Like all other areas of England, the Isle of Wight has its own set of conditions that can influence the local housing market. Factors such as mortgage availability and job security play their part just like anywhere else.

Property prices on the island

At the time of writing (September 2021), the average property price across the island stands at just over £300,000. This is above the average for the rest of the country (£268,000) but below the average for its neighbouring county, Hampshire (£374,000).

Within the Isle of Wight itself, property prices will vary depending upon where you want to buy. Areas such as Yarmouth and Bembridge are considered quite affluent, therefore prices here will be highest (some can reach £1 million+), whereas East Cowes and Newport are typically below the island average.

What if you’re a first-time buyer?

Banks and mortgage lenders will most certainly be just as willing to consider applications from first-time buyers looking to purchase property on the Isle of Wight as they would anywhere else in the U.K.

Despite limited space, there’s a healthy range of properties available on the island from large detached homes to flats/apartments. There’s also a steady flow of new properties being built, which may qualify for some of the special government schemes currently available, such as:

If you are a first-time buyer, don’t be put off by any perceived limitations or additional hurdles purely because of the location. The truth is there aren’t any.

However, as it’s your first time buying a property anywhere, using the guidance of an experienced mortgage advisor is particularly important. They’ll be able to run through all the options available to you in much more detail.

How much deposit you’ll need

The amount of deposit you’ll need for a mortgage in the Isle of Wight will vary from lender to lender. Some lenders may only offer a loan-to-value (LTV) of up to 80%, however, others may be prepared to go up to 90%, so you’d usually need to put down somewhere between 10% and 20% of the property’s value.

Mortgages with LTVs higher than 90% are quite rare. But the good news is, there are lots of banks and building societies willing to consider mortgage applications for properties on the island, which means plenty of different deals and offers to choose from, not to mention the government schemes for people with low deposits that we listed in the previous section.

If you don’t have a large deposit, speak with your mortgage broker in the first instance and they’ll be able to identify the specific lenders who’ll consider applications on this basis.

Buy-to-let mortgages

Buy-to-let mortgages are also available on the island. The Isle of Wight has historically been a very popular tourist location during the summer. As such, there is a constant demand for buy-to-let properties and second (holiday) homes.

Mortgage lenders will always look to offer lending support for specific purposes where this demand exists and the Isle of Wight is no different, with a wide choice of both banks and building societies willing to consider these types of applications.

The process you need to go through to get a buy-to-let mortgage on the Isle of Wight is no different to the rest of the UK. Take a look through our complete guide to buy-to-let mortgages to find out more.

Feefo badge

Get matched with an Isle of Wight mortgage advisor today

A mortgage application for an Isle of Wight property really shouldn’t encounter any extra complications or hurdles than you’d expect anywhere else across the U.K. What’s important is having the right advisor, one who has knowledge and experience of the local market, to help you make the right choices.

This is where we can help. Using our advisor-matching service we’ll be able to identify a mortgage broker who understands the Isle of Wight property market from top to bottom. Call 0808 189 2301 or make an enquiry and we can arrange a free, no-obligation call with a mortgage advisor who specialises in this location today.

FAQs

Are there any additional fees involved with mortgages for Isle of Wight properties?

No, not as such. There may be certain lenders who charge an extra fee purely for any travel costs incurred when valuing a property but that doesn’t apply across all of them. Otherwise, all the fees involved would be in line with the rest of the U.K.

Are the Stamp Duty rules different for properties on the Isle of Wight?

No, not at all. The Isle of Wight is part of the U.K so stamp duty is applied exactly the same there as the rest of the country.

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.

Maximise your chances of approval, whatever your situation. Find your perfect overseas mortgage broker

Get the ‘YES’ you’ve been waiting for 👍

Increase your chances of approval with an expert!

Our broker matching service will match you to a real human being who’s a specialist in your circumstances – for free!

Your expert will find you the best deal that’s right for you and be with you every step of the way.

Get Started