04 December 2012
The Treasury and Resources and Housing Ministers have agreed a pilot scheme to lend eligible first time buyers a deposit to purchase a home.
It is a priority of the Strategic Plan to 'House our Community' recognising the considerable affordability issues that exist for Islanders wanting to get on the housing ladder.
The loan scheme will be open to buyers who have saved a 5% deposit. It lends a further deposit of 15%, with the remainder of the money borrowed from a private mortgage lender. That lender would undertake the usual checks to ensure its loans could be repaid.
The loan from the States would be at 0% interest to help with affordability, and it would be funded from money that has been saved in the States Loan Scheme.
The Housing Minister, Deputy Andrew Green, said “It is vital that we do more to support hard working, frugal Islanders to buy their own home. We recognise that the costs of deposits in Jersey, especially in the current lending climate, make it difficult to get onto the housing ladder.”
The Treasury and Resources Minister, Senator Philip Ozouf, said “I am very pleased to be able to support this pilot scheme, which starts to tackle the challenges in house price affordability that have been highlighted in recent statistics.
“We will be assessing the effects of this pilot scheme as we develop a range of policies over the coming 12 months to support home ownership and decent home standards.”
The Scheme will be debated by the States early in 2013. Guidance notes will be published shortly afterwards for people who are interested in applying for help from the scheme.