Earlier this week it was revealed that ministers were drawing up plans to offer low-interest loans to Islanders who cannot afford to put down a deposit on a property.
The money – from a States account – will only be available to first-time buyers and must be used to put down a deposit.
But Peter Seymour, managing director of The Mortgage Shop, said that although the scheme was well intentioned, it could actually leave some lower-income Islanders unable to get a mortgage.
He said: ‘It is good news that the States are trying to help, and it should be welcomed with open arms. But – and it is a big but – the six lenders in Jersey will now only offer mortgages based on affordability, not just a crude calculation of the multiple of the borrower’s income.
And this includes taking any loans the person may have into account. So if they have this loan, it could actually reduce the amount the bank is prepared to allow them to borrow for the mortgage.
