Guernsey Mortgages

Local Market property makes up the majority of Guernsey’s housing stock and can generally only be occupied by people with Guernsey residential qualifications or an appropriate permit under the island’s population management regime.

A Local Market mortgage therefore requires the lender to be satisfied about both the borrower’s finances and the borrower’s right to occupy the property.

Lenders active in the Local Market assess income, outgoings, and deposit in a broadly similar way to United Kingdom lenders, but the assessment is carried out by a smaller panel of banks with a physical or licensed presence in the Bailiwick.

Employment with a Guernsey employer, self-employment on the island, and income paid in pound sterling are all familiar profiles for Guernsey mortgage lenders.

A buy to let mortgage in Guernsey is a loan secured against a Guernsey property that the owner lets to tenants rather than occupies. Guernsey buy to let mortgages are assessed primarily on the rental income the property generates, alongside the landlord’s wider financial position. Guernsey’s rental market is supplied largely by Local Market property, and demand from the island’s finance sector workforce supports occupancy.

Tax treatment differs from the United Kingdom mainland: Guernsey landlords may deduct a proportion of mortgage interest against Guernsey rental income under the island’s interest relief rules, which is covered in the interest relief section below. Fewer lenders offer buy to let products in Guernsey than in the United Kingdom, so lender selection matters.

Open Market property in Guernsey is listed on the island’s Open Market Housing Register and can be occupied by British and Irish citizens and others with the right to live in the Common Travel Area, without local residential qualifications.

Open Market property is a common route for individuals and families relocating to Guernsey.

Open Market purchases are often at higher values than Local Market equivalents, and lenders may assess relocating applicants on overseas or mainland income, new Guernsey employment contracts, or investment wealth. Private banks and international lenders are active in this segment alongside retail lenders.

Remortgaging in Guernsey follows the same principles as the mainland: replacing an existing loan with a new one at the end of a fixed or discounted period, raising capital, or changing repayment type.

Because the Guernsey lender pool is smaller, borrowers reaching the end of a product term have fewer switching options, and Guernsey’s mortgage interest relief rules historically required the loan to be from a Guernsey lender for relief to be claimed on a principal private residence. Reviewing the market before the existing rate expires avoids defaulting onto a lender’s standard variable rate.

Yes, mortgages are available in Guernsey from banks and lenders licensed by the Guernsey Financial Services Commission (GFSC). Eligibility depends on the borrower’s residential status, the property’s Local Market or Open Market category, income, and deposit. Fewer lenders operate in Guernsey than in the United Kingdom, so lender selection is important.

Most United Kingdom high street lenders do not lend on Guernsey property, because Guernsey has its own property law, registry, and regulator. Lending in Guernsey requires a licence from the Guernsey Financial Services Commission (GFSC), and security is registered at the Greffe rather than the Land Registry.

No, ownership of Guernsey property is not restricted, but occupation is. Anyone can own Guernsey property, but the right to live in a Local Market home depends on residential qualifications or a permit, while Open Market property can be occupied without local qualifications by those lawfully in Guernsey.

No, Guernsey mortgage rates are set independently by the lenders operating in the island and can differ from United Kingdom mainland rates. Guernsey lenders price against their own funding costs and the smaller local market, although the Bank of England base rate still influences sterling borrowing costs generally.

No, Guernsey mortgage interest relief on a principal private residence has not been abolished. The States of Guernsey planned a phased withdrawal of the relief, but the withdrawal was paused and in November 2025 the States resolved to retain the relief at its capped level. Budget rules can change annually.

Guernsey mortgages are offered by retail banks with a presence on the island, Channel Islands specialist lenders, and private banks, all of which must be licensed to lend in the Bailiwick by the Guernsey Financial Services Commission (GFSC). Most United Kingdom high street lenders do not lend on Guernsey property.

Local Market property in Guernsey can generally only be occupied by people with Guernsey residential qualifications or a permit, while Open Market property can be occupied by British and Irish citizens and others without local qualifications. The two markets have separate registers and different typical price levels.

Yes, buy to let mortgages are available in Guernsey from lenders licensed to lend in the Bailiwick. A Guernsey buy to let mortgage is assessed mainly on the rental income of the property, alongside the landlord’s wider finances. Fewer buy to let products exist in Guernsey than in the United Kingdom.

Guernsey mortgage interest relief is a deduction from Guernsey income tax for interest paid on a mortgage over a principal private residence in Guernsey. Relief is capped, applying to borrowing up to £400,000 with a maximum relief amount per person set by the States of Guernsey in each budget.

Yes, Guernsey landlords can claim tax relief on a proportion of mortgage interest paid on domestic let property in Guernsey or Alderney against rental income. The relief is restricted to a set percentage of interest paid and cannot create a rental loss. The percentage is set by the States of Guernsey.