States of Guernsey Housing Loans
States run scheme
For many years the States Housing Authority have assisted lower income earners in buying their own
homes through reduced rate mortgage loans, with the interest rate tailored to their income. This ensures that
repayments never exceed 25% of income. For a couple earning £30,000, monthly repayments under the scheme work
out at £635 against a normal bank mortgage repayment of £919 at current interest rates.
The scheme was re-vamped in 1990 and for some years, there was a waiting list. That disappeared in
1999, but statistics just released by Housing show that already in 2001, demand is outstripping the pool of
Already in 2001, 57 loans have been granted and a limit of 150 has been imposed. This is likely to
reduce to 100 in 2002 in order to bring the fund back into balance. At the end of 2000, there were 495 borrowers
under the scheme with total borrowings of £31.7 million.
The maximum loan available is £130,000 but unfortunately with average house prices exceeding
£200,000, this only buys a one bed-roomed flat. Some argue that the scheme inflates prices, but most agree
that without the scheme many couples would never have the chance to own a property in Guernsey.
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