Remortgaging in Guernsey

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.

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.

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.

Non-residents can obtain a mortgage on Guernsey property, most commonly on Open Market property, which can be occupied without Guernsey residential qualifications. Lenders licensed to lend in the Bailiwick of Guernsey assess overseas income, source of wealth, and relocation plans. Local Market property carries occupation restrictions, so non-resident lending on Local Market homes is limited.

A Guernsey-incorporated company can obtain a mortgage on United Kingdom property from specialist lenders and private banks that accept offshore company borrowers. Mainstream UK high street lenders generally do not lend to offshore companies. Lenders require details of the company's directors, shareholders, and beneficial owners, and usually take personal guarantees from the individuals behind the company.