Guernsey mortgage borrowers better off than in UK

Wednesday 04 November 2009

Guernsey house buyers are ahead of those in the UK when it comes to finding finance, according to leaders in the local property sector.

The Bank of England revealed last month that UK banks are not increasing their mortgage lending, despite encouragement from the Government to do so. Data showed the number of new mortgage approvals had slipped back after several months of rises.

Managing Director of Cherry Godfrey, David Cherry, said that while banks were acting similarly in Guernsey, there are still opportunities for people looking to borrow.

“We have not reached quite the same level of obstruction to lending as the UK, although certainly it is harder to get a mortgage now than say three years ago. As a mortgage broker we have some flexibility and we can often find the best solution for an individual customer.

“In fact, in recent months we have been bucking the trend and aiming to be a safe haven for people in troubled waters. Cherry Godfrey has increased lending to both local consumer and business customers and we are looking to continue to further increase it going forward, using safe and reliable structures,” said Mr Cherry.

Keith Enevoldsen, a director of Martel Maides, said: “There appears to be the beginnings of an easing and the banks are a little less risk averse than they were three or four months ago. They are looking for larger deposits and proof that borrowers can make the repayments.

Mr Enevoldsen added that borrowers are more likely to obtain finance by shopping around.

“From time to time banks buy in money and have access to funds. While they have got those funds they are happy to lend them out but once that block of funding is exceeded they will turn business away. It’s much more controlled and there is much more prudence from banks,” he said.