Getting a Mortgage In Guernsey

If you’re planning to buy a home in Guernsey and need a mortgage, find out what types of mortgages are available, how to get the best rate and how a broker can help you.

Are mortgages in Guernsey different from those in the UK?

The process and the terms would be similar to a UK mortgage. One notable difference is that in some circumstances in Guernsey, you can claim mortgage interest tax relief. Although this is being phased out, it’s still available until 2025. As long as you borrow from a mortgage lender in Guernsey, you can claim. The relief can be claimed on the first £400,000 of any mortgage. If your mortgage is in the single name of the home buyer then you can only claim mortgage interest tax relief for a single person. However, where the mortgage is taken out by a couple, then the mortgage interest tax relief will be higher.

How to get a mortgage in Guernsey

If you’ve found a property you’d like to buy in Guernsey, we recommend you work with a mortgage broker who specialises in mortgages in the Channel Islands. Enquire with us and we’ll match you with a dedicated expert. They will help you with:

1. Downloading and optimising your credit reports. Your broker will work closely with you to identify any issues in your credit report and use this information to help them find a suitable mortgage lender
2. Find a suitable lender. This will involve identifying the appropriate lender, who offers the best rate and offer for you, based upon your circumstances
3. Submit your application. You won’t need to do anything apart from supplying your broker with all of your details so that they can complete and submit your application to get your mortgage loan approved. 

How much can you borrow?

There are several factors which will affect how much you can borrow::

• The size of your deposit.
• How long you would like the mortgage for; the mortgage term
• How much you can afford to repay each month.
• Your credit history.
• Your combined earnings (if you’re applying using joint income)

What mortgage interest rates to expect

Mortgage interest rates are similar to those in the UK. They range from a 4.5% to 6.5%. Which rate you can secure depends on a number of details, many of which are personal to you.

They include:

• How much you wish to borrow.
• The size of your deposit.
• The value of the property you’re buying.
• Your financial history.
• Your working status and salary.
• The mortgage term you’d prefer to agree.
• Which lender you choose.
• The type of mortgage you agree.

The lower mortgage interest rates are typically available on tracker mortgages and two-year fixed-rate deals. However, this can vary from lender to lender.

Which lenders are available?

There are now more mortgage lenders available than there used to be. This means that most home-buyers have a good level of choice when looking to buy a home.

Here are some example lenders available:

• Barclays
• HSBC
• Lloyds Bank
• Natwest
• Royal Bank of Scotland
• Skipton

Speak to a Guernsey mortgage expert

If you’re interested in buying a home in Guernsey and would like to find out more about mortgages there, then you could get in touch with us at Online Mortgage Advisor. Give us a call on 0808 189 2301 or fill in our online mortgage enquiry form.

Once you’ve given us your details you can then sit back and relax while we do the hard work of putting you in touch with the right mortgage broker for your needs.