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Mortgages in Jersey

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Feb 8, 2023

Mortgages in Jersey

Jersey, the biggest island in the Channel Islands, is one of the best destinations for its natural beauty. It also boasts some great weather thanks to the Gulf Stream, which prevents it from being affected by the weather systems that impact most of the UK.

Jersey’s crime rate is very low, around half that of England, in addition, speeding is taken very seriously, with an all-around speed limit of about 40mph on the island. And it boasts a beautiful coastline. It’s no wonder that people desire to live here, so in this article, we’ll talk about how you can get a Jersey mortgage.

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The situation in Jersey

Right now, Jersey isn’t just a great place to live because of its safety and beauty but because lenders offer mortgages with low interest rates. Although owing to the low stock of houses, there has been a rise in property prices.

The booming financial sector is fueling a lot of interest in buying property on the island. This, of course, makes it a seller’s market. Current forecasts tell us that owing to the island’s popularity, the population is likely to climb by 128,000 by 2035 – this is a 21% increase.

Jersey could be considered a tax haven, despite the push against these situations worldwide. Although it’s not free of tax, in Jersey, residents still have to pay income tax and specific contributions toward public services.

That said, corporate income tax remains at 0%.

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Eligibility requirements for mortgages in Jersey

The eligibility regulations primarily focus on those born in Jersey or who have lived there for at least ten years. These two groups have full rights to let, buy and sell property on the island. However, that doesn’t mean that there aren’t other options. Jersey offers something known as a high-value residency (or HVR) program.

The local government is highly proactive in attracting individuals suitable for this program. Mortgages in Jersey are considered international mortgages, despite being valued in pounds sterling.

High-value residencies

These are great as they’ll allow you to purchase property in Jersey. However, to apply for an HVR, you’ll need to meet a couple of conditions. Although, it’s usually only possible if you plan to become a permanent Jersey resident.

This residency doesn’t come cheap. You’ll need to contribute a minimum of £145,000 in local taxes. Additionally, you’ll need £750,000 or equivalent in global earnings.

Apart from this, you’ll need to buy a property that is considered to be high-value. This is usually around a purchase price of £1,750,000 or even more. Although the latest market news on property prices may differ.

All of this said, your eligibility for an HVR will be determined on a case-by-case basis. There is no guarantee that you’ll qualify just because you meet all the criteria.

Unqualified properties

Unqualified properties are kept aside from islanders who haven’t lived on the island long enough to qualify for residency but hold a prominent position in the local economy.

If you’re somebody who earns what might be considered to be a complex source of income, which could be the case with many self-employed individuals, you’ll need a mortgage provider who’ll evaluate your entire range of assets. At Loan Corp, we can help you find just the right one.

Complex circumstances include if you have a solid international background or if your wealth is tied up in assets in various places.

However, if it’s simply the case that you’re self-employed, you’ll need a couple of things:

  • A deposit of 25% (or less).
  • Two to three years of accountant-certified accounts.
  • A credit history.
  • And anything else as requested by the lender.

Assessment criteria for employed individuals

The mortgage terms for employed individuals are a bit different to those who are self-employed. For example, lenders will take into consideration (and require):

  • Six months of monthly payslips (and possibly more).
  • Information on other debts you may have.
  • Your age and if you’re a first-time buyer.
  • Your credit history: getting a Jersey mortgage can be pretty challenging if you have a poor credit history.

It’s important that lenders thoroughly assess your eligibility to protect you from issues down the line. Fail to make your mortgage payments, and your home may be repossessed.

Houses in multiple occupancies (HMOs)

This is rented out to several tenants who use shared facilities. These may often be used as student accommodation. HMOs may prove quite tricky to acquire, especially for an owner that doesn’t have a track record as a landlord.

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Assets Under Management (AUM) for Jersey mortgages

You might be able to get a better deal if you can leverage your investments and other global capital. This means that you might be able to get a lower interest rate and an even better LTV ratio, perhaps even at 90%.

That’ll depend on your circumstances, which our Loan Corp team is well qualified to assess.


Is the process different from the UK?

The standard process for financing properties is similar to that in the UK. And the base mortgage rates are tied to the Bank of England. The Channel Islands, though seemingly independent from the UK, are still under the UK’s protective wing.


Interest tax relief for mortgages in Jersey

Although phasing out in 2025, as of right now, you still may be able to claim Jersey mortgage tax relief when buying a house in Jersey. This can be for properties that you currently or will own or ones that you have expansion plans for.

Additionally, someone who claims interest rate tax relief must be a full-time resident.


LTV Ratios for mortgages in Jersey

Local lenders in Jersey tend to make similar offers to those you’d find in the UK. Many first-time buyers are attempting to get 100% LTV loans. While this isn’t an easy prospect, it isn’t entirely impossible. You might also get some other tempting offers with high LTVs.

Ultimately it can be challenging to understand and go through each and every one you get. So, we’ve made it easier for you. Our team will help make your mortgage process as stress-free as possible.

Contact us on 0808 301 9509 to get a hold of one of our friendly professionals. You can also use a mortgage calculator (such as our new build mortgage calculator), which will also help you figure out if you can afford a mortgage in St Helier and other parishes in Jersey.

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Fees for expats

Unfortunately, expats can expect to pay more than local domestic mortgages. Depending on the size of your property, this could be pretty expensive. You may have to be around 1% more than Jersey residents. This is only to cover for risk in case any problems arise.

You’ll also have to pay land transaction tax and stamp duty. Although, first-time buyers may be able to get concessions, provided they meet specific criteria. Ideally, they’d not have owned any property before, and the property they’re requesting concessions for is not worth over £500,000.


Types of mortgages in Jersey

There are different kinds of mortgages available in Jersey, such as repayment mortgages like fixed rate and variable rate. You might also be interested in an interest-only mortgage if you find that your wealth is tied up in investments at this moment but won’t be at the end of the mortgage term.


Mortgages in Jersey Protection

There is protection available for Jersey mortgages. You may even want to take out illness or life insurance coverage. Check with your insurance provider to see what may be available for you.

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Can I get a mortgage in Jersey?

You will be able to get a mortgage in Jersey. Residents are freely able to purchase, sell and let property. Non-residents will have to qualify in two ways: they either have to be high-income individuals or hold a prominent position in Jersey.

Are mortgages regulated in Jersey?

Mortgages are regulated in Jersey but not directly by the Jersey Financial Service Commission. Instead, lending is governed by the Banking Industry Law of Jersey.

Is Jersey part of the UK?

Jersey is officially declared, like the other Channel Islands, as constitutionally autonomous from the UK, but at the same time not wholly independent from it. Most of its international representation is from the UK government.


Contact our local team for more information

At Loan Corp, we want to help you find the best mortgages from the right lender. Our mortgage professionals are well-qualified to offer mortgage advice regarding Jersey mortgages. You can contact us at 0808 301 9509, or you fill out our contact us form for our financial services.

We aim to get back to every query within two hours from Monday to Friday and four hours over the weekend or on a bank holiday.

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