Mortgages on the Isle of Wight Explained

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 are plenty of local mortgage brokers we can introduce you to who can help guide you through the process.

There are 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., and there are miles and miles of gorgeous beaches to explore. There are 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 that just because the Isle of Wight is an island, it’s still 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 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

In recent years, the average property price across the island has stood at just over £300,000. This is above the average for the rest of the country but below the average for its neighbouring county, Hampshire.

Within the Isle of Wight itself, property prices will vary depending on where you want to buy. Areas such as Yarmouth and Bembridge are 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 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, a healthy range of properties is 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:

• First Homes scheme
• Help to Buy: Equity loan scheme
• Right to Buy
• Shared Ownership

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 review 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 that many banks and building societies are 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 first. They’ll be able to identify the specific lenders who’ll consider applications based on this.

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. There is a wide choice of 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.

Get matched with an Isle of Wight mortgage advisor today

A mortgage application for an Isle of Wight property 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 with 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 0330 818 7026 or make an enquiry, and we can arrange a free, no-obligation call with a mortgage advisor who specialises in this location today.