Boost for housing market as lenders relax

Monday 15 June 2015

The property market could be about to pick up, with lenders relaxing criteria and preparing to extend mortgage terms back up to 35 years.

Property expert Paul Scally says that the fact that more money will be available to house-hunters is great news for both buyers and sellers.

His comments came after one of Jersey’s biggest lenders, Skipton, increased mortgage terms to 35 years. But he says that they’re not the only ones making more money available.

Mr Scally – a partner at law firm Le Gallais and Luce – said that the trend would provide a much-needed boost to the property market.

He said: “It is great news for buyers and sellers! It will enable more people to get a mortgage and potentially borrow more.

“It’s especially good for first time buyers as Skipton have always been fantastic for them. The market will be looking far better with this news - it’s a well-needed boost.”

A statement from Skipton about last week’s change in policy said that as a responsible lender, they always ensure that affordability was maintained.

Managing Director Jim Coupe said: “Skipton International, along with other financial institutions, is constantly reviewing its rates and lending terms in reaction to the market and to customer needs.  In light of this, we have this week increased our loan terms to 35 years.”

In May, property prices revealed that while there had been signs that the five-year price-slump was over, more recent figures showed a 1% drop over the start of the year.

The stats in the quarterly House Price Index showed that property prices in Jersey are more or less back to where they were in the middle of 2009.

The most recent figures for January to March show that:

• One-bedroom flats had dropped £16,000 to £201,000.

• Two-bedroom flats had dropped £6,000 to £335,000.

• Three-bedroom houses had dropped £2,000 to £524,000.

• Four-bedroom houses had dropped £5,000 to £707,000.