FIRST-TIME buyers are to find it even harder to get onto the housing ladder as the credit crunch starts to bite in the Island.
They will be hit by the news today that Jersey’s biggest mortgage lender is dropping 90 per cent mortgages – and demanding a deposit of at least 25 per cent.
Jersey Home Loans has announced a change in lending policy, sparked by the global credit crunch. The firm has been Jersey’s biggest lender for the past two years, with a 25 per cent share of the market and around £700m loaned out to Jersey homeowners.
And their competitor Newcastle are demanding a 15% deposit – meaning that first-time buyers who are already struggling with a 40% increase in the cost of some properties over the last 18 months have been dealt a further blow.
• Picture: Jersey Home Loans managing director Rob Procter
3 Article Comments
I was told a few months ago that you should not worry about the credit crunch in the UK as it won’t effect Jersey.
Typical Jersey thing to say! But here i am been proved correct that as Jersey now relies upon Finance for its income the crunch will affect everyone in Jersey.
Give it a few more months and the reports will be of job loses around the island.
As for the house prices, i feel sorry for the working Jersey person and i would reccomend investing your money in other countries aboard.
Well it goes from bad to worse.Shame on our Jersey born States Members selling their own people short in the Island of our birth with regard to housing and a quality of life we once enjoyed. Do the Council of Minsters live in a little box that they give developers permission to build for first time buyers???What about the single person NO HELP THERE to buy first time on a wage of £20.000.00 gross unless in the PRIVATE SECTOR ( NOT A FINANCE WORKER or a J or 1.1K )(Just a Jersey Born)
Just as some States Members appear to have no respect for their people or their wishes, in return there is no respect for them. At least not from me.
We were lucky in our day. The States gave assistance to the value of 100% of the value of the property.