Citizens Advice Bureau

Housing

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

Beaches ( 11.15.6 )
Commercial Leases ( 11.8.4 )
Conservation Groups ( 11.15.4 )
Conservation of Wildlife ( 11.8.52.L5 )
Control of High Hedges (including Cupressus Leylandii) ( 11.8.52.L8 )
Department for Infrastructure (formally Transport and Technical Services) ( 11.15.1.L7 )
Destitution ( 11.1.1.L1 )
Disabled persons - Housing adaptions for people with disabilities (11.8.22)
Environmental Protection (11.15.2 )
Estate Agents, rules ( 11.1.35 )
First Time Buyers/ Jersey Homebuy Scheme ( 11.1.33.L2 )
Hostels ( 11.1.1.L2 )
Housing repairs ( 11.8.18 )
Housing Trusts and Associations ( 11.1.20.L1 )
Jersey Chartered Surveyors ( 11.1.38 )
Jersey Cottage Homes - ( 11.1.62. )
Leases – General Information / Notice / Evictions ( 11.8.1.L1 )
Lodgers and Lodging Houses ( 11.8.10 )
Lodging House Association ( 11.1.8.L7 )
Lodging House Information ( 11.8.10.L3 )
Mortgages ( 11.1.30.L8 )
Parks and public areas ( 11.15.9 )
Pest Control - Moles, wasps, rats, mice and bird species ( 11.8.52.L4 )
Planning and Building Services ( 11.15.1.L2 )
Private sector accommodation via agencies ( 11.1.8.L2 )
Problems with trees and hedges ( 11.8.52.L3 )
Property - Moving Checklist (11.1.30.L9)
Public Sculpture Trust ( 11.15.9.L1 )
Refuse collection / Glass disposal / General information ( 11.15.8 )
Registered Lodging Houses List ( 11.1.8.L3 )
Rental Deposit - Getting a deposit back - Tenancies & Lodgers NOT protected under the Deposit Protection Scheme (Mydeposit Jersey) (11.8.1.L4)
Rental Deposit - Getting a deposit back - Tenancies protected under the deposit protection scheme introduced on the 2nd November 2015 ( 11.8.1.L3 )
Restraint on assets ( 11.12.12.L8 )
Social Housing Accommodation ( 11.1.17. )
Social Housing Rents - ( 11.1.17.L1 )
States Loans ( 11.1.33 )
Tenants Associations ( 11.8.1.L5 )
Tenants problems / Access by landlords ( 11.8.1.L2 )
The Affordable Housing Gateway (11.8.1.L8)
Tied accommodation ( 11.5.14 )
Use of water - Customary Law ( 11.8.52.L1 )
PDF

LOCAL INFORMATION

11.1.30.L8
Mortgages

Extent: Jersey
Updated 12 February 2016
---------------------------------------------------

Words you may need to know

Mortgage - this is a loan which you use to buy property and which gives the lender a legal charge over the property. This means if you don't keep up the mortgage repayments, they can take ownership of it.

Independent - free from the authority or control of another

Repayment - the amount you will have to pay back

Tax relief - a discount which is given against the tax that you have to pay

Stamp duty - on top of your purchase price for the property you also have to pay a tax to the States. The more expensive the property, the more you pay

Deposit - this is a part payment for the property. The more you have to put down, the better the interest rate will be

Taking out a mortgage

You should get independent advice from an expert in the field or advice from your own bank when taking out a mortgage.

Jersey Lending

There are many types of mortgage and you need to take advice on which one is right for you. Much will depend on your financial circumstances and the kind of work you do. There are tracker, discount and fixed rate types available and in some instances you might be able to borrow the whole of the purchase price. This is called a 100% mortgage. In general though the higher the deposit you have, the better the repayment rate will be.

Base rates

This is the interest rate set by the Bank of England and on which the mortgage rates are set. For many years it has been very low which makes it good for anyone borrowing, but very bad for savers. You can find out what the current interest rates are by checking with the different companies or banks who offer mortgages. You must check around as some may seem lower but they charge a fee to set the mortgage up. Always ask about any extra costs.

There are mixed opinions on when base rate will start to rise, or for that matter remain where it is for the time being. Currently it is expected there may be an increase between February and September 2016 although there are so many outside influences that could change this. Any rate increases will be gradual and as a result any borrowers who are on a tracker or discount mortgage should be somewhat protected.  As with any borrowing however, your home or property could be at risk if you do not keep up the repayments.

First Time Buyers

The States plan to introduce changes in 2016 that will reduce the tax relief that many borrowers are currently able to claim on their mortgage – these changes will be brought in over a ten year period. The good news is that there are also plans to increase the ceiling for stamp duty reductions from £400,000 to £450,000.

100% Mortgages

These are still available and provide an opportunity for anybody without a deposit to get their foot on the property ladder. For all mortgage enquiries contact a mortgage lender.

For more information see www.gov.je/Government/Consultations/Pages/JerseyHomebuy.aspx

For other schemes see www.andiumhomes.je/Pages/default.aspx

Income Tax Relief

See States of Jersey website