Mortgages in Guernsey

There is a common misconception that Guernsey offers "tax-free" status. While there is no Inheritance Tax, Capital Gains Tax and VAT, you will be liable to pay income tax. Income tax is charged at a standard rate of 20%.

The standard corporate income tax in Guernsey is 0% for most businesses. However, there are exceptions to this 0% rule. It is always important to seek expert advice before you redomicile or set up a business on the island. You should also request advice from local specialists regarding specific implications of residing in Guernsey regarding your overall tax situation and how you will be affected.

When looking at options for Guernsey home loans, you will naturally want the most advantageous rates. While the process of getting a mortgage in Guernsey isn’t that dissimilar to the process you’d undertake in the UK, you’ll want to be aware of a few differences. Guernsey property finance can be complex, especially if you are purchasing a high-value property.

Guernsey mortgage rates vary from lender to lender, and what you will be offered will depend on your situation, background and assets. That said, you will benefit from very attractive deals if you can present the right details to lenders. Getting the best Guernsey mortgage rates is often a case of carefully presenting the elements, assets and security to lenders that will give them the appetite and the confidence to lend. This will be especially important for significant purchases or if you have a complex background.

When it comes to getting the best Guernsey mortgage rates, you’ll want to note:

• Guernsey mortgages are international mortgages, although they are valued in sterling and are linked to the UK's base rate
• Guernsey’s mortgage interest tax relief system is not the same as you’ll find in the UK. You will be able to claim a deduction on the interest rate if you buy a Guernsey property that you will live in or currently live in and plan to expand. There’s an upper limit on the tax relief available, and the rate is subject to change

Guernsey’s local high street lenders will generally offer loan-to-value ratios like those you would find at high street banks and lenders in the UK. These lenders may not provide you with the best rates if you have a complex background, are making a high-value property purchase or wish to look at alternative financing options, however. In these cases, Enness will be able to negotiate very attractive deals from other lenders. These include both local and international private banks.

What a lender will let you borrow will depend on your circumstances. Base rates are linked to Bank of England rates, and Guernsey mortgages are regulated in the same manner as the UK mortgage sector. The fact that Guernsey property finance is valued in sterling takes away the currency exchange risk for many international investors. With the current low interest rate climate, you will find that rates are usually very competitive.

Guernsey mortgages can be deceptive: comparing different offers should be easy, but often it’s not. There are often subtle differences in the offers you receive from various lenders, which look innocuous. However, small details can significantly affect what you pay or how much you can borrow. As a result, it can be quite usual to need help understanding what you’ve been offered for Guernsey property finance and if it’s the best deal available for you.

Working with Guernsey mortgage brokers will help you understand what finance you have been offered and make a decision safe in the knowledge that you have the best rates and terms to choose from.

Enness is one of the leading brokers for high-value Guernsey home loans. Brokers are well known for helping high-net-worth individuals with Guernsey property financing, and Enness will help you get the most competitive mortgage rates and terms. Some Guernsey mortgage brokers are limited to the lenders they can approach and are only able to negotiate with just a few lenders. Enness is not similarly constrained. With access to more than 500 lenders, Enness pinpoints and arranges the best Guernsey mortgages from private banks, international, domestic, and alternative financing sources.

If you are buying a property in Guernsey – particularly a high-value home – Enness will be able to open the wider Channel Islands mortgage market for you. Rather than only seeking out mainstream lenders for Guernsey home loans, Enness will be able to negotiate with an array of private banks and other niche lenders. Your broker will be able to secure the most advantageous mortgage rates and terms and will also be able to utilise your global assets to ensure the best deal. This might include pledging assets under management with a lender or helping you benefit from other financial arrangements or connected services from your lender that will be favourable for you.