What does 2022 have in store for Jersey mortgages?
Noel McLaughlin, of Butterfield Bank, replies:
AFTER two years of a very active property market in Jersey, there is a lot of discussion about what this year will hold.
Some industry commentators are forecasting a quieter 2022, suggesting the market will stabilise and return to pre-pandemic levels of activity. However, there are others who predict the market has not peaked yet and that, instead, 2022 will see a continuation of high levels of activity, while estate agents, brokers and lenders could be in for another busy year.
Demand is certainly there for mortgages as Islanders are still looking to upsize. Having more space has always been a key driver for moving but especially so since the work-from-home trend was accelerated by the pandemic.
The market is busy and prices have risen as a result, but buyers still perceive inherent value in owning a home. Butterfield’s 2021 Channel Islands Mortgage Survey revealed that ‘prefer to save equity than spend on rent’ was the most popular reason to own a property, showing that borrowing for a mortgage is still considered to be more attractive than covering rental costs.
In addition, remortgaging may be on the rise. There will be some who fixed their mortgage at higher rates and, if their terms are soon to expire, may also be tempted into remortgaging this year to ensure they get a better deal.
The recent surge in demand over the past two years has also boosted property value which has, in turn, increased people’s borrowing. Butterfield’s survey found that equity release was a top reason that people chose to remortgage, opening up opportunities to make home improvements, create that much-needed home office, implement smart or sustainable technology.
2022 may be the year more people explore their refinancing opportunities, meaning the Island’s mortgage providers can expect to be kept busy.
