A common misconception is that Jersey home loans are a like-for-like mirror of the process you'd experience in the UK. The reality is different, and property finance in Jersey is unlike the UK in a few significant ways.
In short: mortgages in Jersey can be complex. Enness is always happy to discuss the process and details more fully with you at any time and without obligation. If you have questions or would like to know more about buying a house in Jersey, get in touch at any time. One of Enness' brokers will contact you to discuss your options and property finance on the island. However, some of the key facts concerning property finance in Jersey are as follows:
Jersey mortgages are international mortgages, although they are valued in sterling and are linked to the UK's base rate
Jersey's mortgage interest tax relief system is different to the UK's. In Jersey, the system will not be phased out until 2025. You will be able to claim a deduction on the interest rate if you're buying a house in Jersey that you will live in or currently live in and plan to expand. There are also other conditions: to benefit from interest tax relief, the lender must carry out business locally on the island, for example. You must also be a full-time resident
There is a limit to the level of mortgage tax relief available (it is also subject to change)
Buy-to-let mortgages in Jersey may be subject to housing qualifications and individual status
Jersey registered businesses are exempt from local taxes. As a result, commercial property mortgages are prevalent
Stamp duty and land transaction tax are applicable, but there are concessions for first-time buyers