- Property: Jersey, Channel Islands
- Property value: £2.55M
- Loan amount: £1.625M
- LTV: 64%
- Mortgage type: Interest-only
- Fixed term: Five years
- Interest rate: 1.34% fixed
Jersey is an established destination for high-net-worth individuals looking for a combination of lifestyle, property and access to a sophisticated international financial centre. Its property market also attracts borrowers with complex financial profiles who may require a more bespoke approach to mortgage finance.
Enness was approached by a high-net-worth client looking to relocate to Jersey and purchase a high-value residential property. Once the property had been identified and an offer accepted, the client required mortgage funding to complete the acquisition within a relatively short timeframe.
The property was valued at £2.55M, with the client looking to secure mortgage funding of £1.625M. This represented a 64% loan to value (LTV).
The size of the transaction and the client’s requirements meant that lender selection was particularly important. For high-value Jersey property, private banks and international lenders can sometimes provide greater flexibility than conventional lenders, particularly where a borrower requires a bespoke repayment structure.
In this instance, the client was looking for an interest-only mortgage. Interest-only borrowing can be useful for certain high-net-worth borrowers where there is an appropriate strategy for repaying the capital at the end of the interest-only period, although the suitability of this structure will depend on the individual circumstances and lender criteria.
Enness approached its lending contacts in Jersey and identified an international bank with an on-island presence that was able to consider the transaction. The established relationship helped the application progress quickly, with the initial meeting through to credit approval taking just three days.
The resulting mortgage provided £1.625M of funding against the £2.55M Jersey property, representing 64% LTV. The mortgage was structured on an interest-only basis and fixed for five years at 1.34% at the time.
The structure gave the client a high-value mortgage with a fixed interest rate for the initial five-year period, providing greater certainty over the cost of borrowing during that period. The transaction also demonstrated the value of working with a lender familiar with Jersey property and high-value international borrowers.
Enness works with both local and international lenders to arrange Jersey mortgages for high-net-worth individuals. Depending on the borrower’s circumstances, available solutions can include residential mortgages, interest-only finance, high-LTV lending and other bespoke structures. :contentReference[oaicite:0]{index=0}
For clients looking to finance a high-value Jersey residence, specialist high-value mortgage expertise can help identify suitable lenders and structure finance around the borrower’s requirements, subject to valuation, underwriting, affordability and lender criteria.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, affordability, valuation, property suitability, due diligence and lender criteria. Terms, rates, LTVs, fees and availability may vary depending on individual circumstances.
Risk Warning:
Property securing finance may be repossessed if repayments are not maintained. Property values can fall as well as rise. Interest-only borrowing does not reduce the capital balance during the interest-only period, so borrowers should have an appropriate and realistic repayment strategy in place. Fixed-rate borrowing may also involve early repayment charges or other conditions depending on the mortgage product.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
