For many people in Guernsey and Jersey, buying a first home has felt increasingly out of reach.
House prices, pressure on household budgets and the challenge of saving a substantial deposit have led many would-be buyers to assume home ownership is still some way off. However, the renewed availability of 95% mortgages from local lenders is beginning to shift that outlook.
After a period where 90% loan-to-value products became the standard for first-time buyers, some lenders are once again offering 95% mortgages – allowing buyers to secure a home with a 5% deposit. For those struggling to bridge the gap between rising rents and saving, that smaller deposit requirement can make a significant difference.
Advisers in the local market say they are seeing increased interest from people who had previously ruled out buying.
“Many people assume they’re still years away from owning,” said Pierre Blampied of SPF Private Clients. “But when we look closely at their circumstances, some are surprised at what may now be achievable. The return of 95% mortgages has reopened conversations for buyers who felt locked out.”
The shift is particularly meaningful for younger buyers keen to establish stability in the islands’ competitive housing market.
“Buying your first home is not just a financial step, it’s an emotional one,” added Paul Hyde. “It’s about security and putting down roots. The key is helping people understand the full picture – the costs, the responsibilities and what works for their long-term plans.”
