Lender reaches half a billion pounds of Island mortgages

Thursday 06 October 2016

Skipton International has announced that it has reached £500 million in mortgages in Jersey this month - in part, thanks to lower interest rates and strong demand.

The Channel Island-registered bank began lending on the Island in 2005, having since grown to one of the largest providers of new residential mortgages.

Jim Coupe, Managing Director of Skipton International, said that he was “delighted to have reached this level of mortgages in Jersey and to have become an integral part of the Island’s property market during this period.”

The average Jersey house price currently stands at £468,000, with House Price Index figures showing property prices are up 7% on the second quarter of 2015 - “up to 2008 levels”, according to Lorraine McLean, Mortgage Sales Manager.

Following the Bank of England’s recent cut to the base rate, Skipton passed on the reduction to Channel Island mortgage customers, taking the SVR from 4.99% to 4.75%.

“Interest rates are at the lowest levels in years, which makes home ownership an increasingly attractive option for more people. We are seeing buoyant and healthy interest in our mortgages from first time buyers, and from people at all points in the housing ladder. With our website’s Jersey Mortgage Calculator that enables customers to see how much they could potentially borrow and the associated repayment costs, we have become particularly busy,” commented Ms McLean.

Last month, Skipton announced its support for Andium HomeBuy in order to provide affordable home ownership. The scheme gives buyers the option to defer payment of up to 25% off the purchase price of the property.

Mr Coupe commented: “As a Channel Island-registered bank, Jersey is an important market for savings and mortgages. Thanks to our strength in both of these areas, we are able to support the local economy by returning the money we look after from depositors through our mortgage loans.”