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Mortgages in Guernsey

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Feb 8, 2023

Mortgages in Guernsey

Guernsey is a wonderful place to live. Locals and international visitors report how, despite being a small island, it offers much to do and a lot of free time to enjoy life, all without the hustle-and-bustle of a busy city, people report a much higher quality of life and less stress, and, not neglecting to mention, shorter commutes.

It’s a very safe and clean island where residents can explore without fear of crime, but, we imagine you’re already aware of all this, and that’s why you’re here, trying to determine how to get Guernsey property, well, we’ve got you covered, so please do read on.

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The situation in Guernsey

Guernsey and its capital, St. Peter Port, have a high demand for financial professionals as the island boasts a well-renowned financial sector. This is fueling a demand for residential mortgages, increasing prices in the Guernsey mortgage market, with the average house costing around £500 000. Anyone born in Guernsey will, of course, take preference on properties, however, people such as critical workers are also favoured.

Open-market properties

Only 6% of properties in Guernsey are open market properties, which creates a lot of competition. Overseas mortgages are available to both Swiss and EEA nationals with no restrictions., even that outside of Switzerland and the European Economic Area may be able to purchase according to specific criteria.

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Applying for Guernsey mortgages

Like in the UK, applying for a home loan is merely a matter of speaking to a lender who will provide you with an offer after assessing your current eligibility. Please help us help you by contacting us for help getting your mortgage on this island in the Channel Islands.


Types of Guernsey mortgages

While offers may vary, evaluating what mortgage may be best for your financial situation beforehand will put you in good stead when purchasing your own home. There are several options available to you:

Fixed-rate Guernsey mortgages

Undoubtedly the most popular option in the United Kingdom and Guernsey is a fixed rate mortgage that sets your interest rate for a specific period. So, your payments will stay the same despite the Bank of England’s interest rate fluctuations.

This kind of mortgage offers:

  • Stability and consistency.
  • Security.
  • An easier way to budget.

However, it doesn’t offer:

  • Flexibility.
  • The benefit of lowering interest rates between the period.

Base rate tracker Guernsey mortgages

Unlike fixed-rate mortgages, tracker mortgages are tied to the interest rates of the Bank of England. While choosing this option could be an excellent strategic move at the right time, it does have some disadvantages:

  • It’s hard to ensure financial security.
  • You’ll have to budget for potential changes in interest rates.

At the end of the day, it can very well be a cheaper option than a fixed-rate mortgage, but only if you’re willing to take the risk.

100% Guernsey mortgages

A 100% Guernsey mortgage is not particularly easy to acquire because you’ll need a guarantor. They’ll have to offer a guarantee through an interest-bearing account holding a certain percentage of the LTV or a bond on their property. Despite this, it’s a wise option for first-time buyers as you don’t need to put down a deposit.

However, the disadvantage is that you do put someone else at financial risk.

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Tips for taking out Guernsey mortgages

Taking out a new mortgage can be costly, not just in the long term, but the initial investment itself can be a hefty investment for most people. Property prices in Guernsey are high, and because of this, we’ve put together some tips which we highly recommend you consider when contemplating purchasing on the island:

  1. Don’t ever take out a loan from someone not officially registered with the Guernsey Financial Services Commission. Doing so puts you at risk, as you don’t know whether they’ll see their commitment through, and it offers you much less legal security.
  2. Don’t take out a mortgage that you may be able to afford now but won’t in future. Always plan realistically. Clients who have well-paid jobs now but are considering quitting should not take a mortgage. Being unable to keep up with repayments can cause emotional and financial stress should they decide to leave their job anyways.
  3. Consider the lender’s terms and conditions very carefully, as well as any consequences for missing repayments. You want to understand, fully, what you’re getting yourself into. You can always speak to one of our mortgage professionals who will help you understand your contract.
  4. It’s best to ensure that any other debts will not interfere with your ability to make monthly repayments. Always assess this first.

If you’ve considered the above and still want to purchase a property in Guernsey, then we’re excited for you and would be happy to help you get the process along. Contact our team on 0808 301 9509 or fill in this form to get a quote.

We try our best to contact you within 2 hours during the week and 4 hours over the weekend or on a bank holiday.



Many believe that Guernsey is tax-free, but this isn’t close to the truth. So although you’ll find that there is no value-added, capital gains, withholding, or inheritance tax, there is still income tax, which is, interestingly enough, a flat rate of 20%.


Interest rates

Generally, interest rates range between 1.5% to 5% (although we’ve seen +/- 6%), depending on numerous variables, including:

  • Your monthly income.
  • The type of mortgage you get.
  • How much you want to borrow.
  • The size of your deposit.
  • The value of the property or purchase price.

The increasing mortgage rates

Experts predict that mortgage rates will climb until the 2024 UK general elections, after which they should drop. Barclays, for instance, increased the rate of their five-year deal from 1.99% to 6.29%, however, they did drop a £999 fee.

Interest tax relief in Guernsey

Firstly, we must note that this is only valid until 2025. After this time, you will no longer be able to claim this benefit. You can claim this tax relief on £400 000 of your mortgage, but no more. In addition, the percentage that buyers can claim each year is decreasing.

If you claim as an individual, your tax relief will be limited. However, it is increased if claimed by more than one person, such as in the case of family mortgages.

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Loan-to-value ratios

Unfortunately, it’s difficult to say what kind of LTV ratios you’ll get in Guernsey, as this depends on many variables. Of course, first-time buyers and non-residents won’t get as desirable ratios as residents or those who’ve purchased many properties before.

Lenders always look at the person’s credit history when it comes to mortgages, and someone with an excellent financial history will get better offers. Now, all of this said, with a guarantor, getting a 100% LTV is not impossible. Call us for more information and to see if you’d qualify on 0808 301 9509.


Looking for mortgage services? Contact us.

We have over 200 lenders in the UK in our panel and will work meticulously to help find you the absolute best deal. Our financial services team is available from Monday to Friday, 8 AM to 5 PM. We’ll also be able to answer you on the weekend or bank holidays, though this will take a bit longer.

Inquire today to get your free quote and mortgage advice.



Are mortgages in Guernsey different from those in the UK?

Guernsey mortgages are still international loans, despite being valued in pounds, as the island is not a part of the United Kingdom.

How do I get a mortgage in Guernsey?

We recommend contacting us to assess your eligibility for a mortgage in Guernsey. However, you will either need to live in Guernsey already or meet specific criteria, such as being a critical worker. Applying isn’t much different to the UK; you contact a lender who will determine your suitability.

How much can I borrow for a mortgage in Guernsey?

This is a difficult-to-answer question. How much you can borrow for a mortgage will depend on several factors, including whether or not you’re a resident, your income, and if you’re a first-time buyer.

Will I get mortgage interest tax relief in Guernsey?

Yes, mortgage interest tax relief is available until 2025, however, you can only claim it on the first £400 000 of the mortgage. That said, it’s still a potentially fantastic way to get a property on this beautiful island.

What are mortgage interest rates available in Guernsey?

Unfortunately, interest rates appear to be increasing. Ideally, they should vary from 1.5% to 5%; recently, we’ve seen rates as high as 6%.

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