29 July 2013
A six month pilot of a new Starter Home Deposit Loan Scheme is being launched today (29 July 2013). It is a joint initiative by the Treasury and Resources and Housing Ministers, and was agreed by the States earlier this year.
The aim of the scheme is to help first time buyers who can afford to make monthly mortgage repayments, and have saved at least a 5% deposit, by lending up to a further 15% as an interest free deposit loan. The buyer would need to borrow the rest of the money from Skipton International Limited, the scheme’s approved mortgage lender.
Housing Minister, Deputy Andrew Green, said “I’m delighted this pilot scheme has been launched. I believe it will make a real difference in supporting hard working Islanders who want to buy their own home.
"We recognise that the cost of deposits in Jersey makes it difficult for first time buyers to get on the housing ladder and I hope this scheme will provide practical help.
“This is part of a wider emphasis on improving affordability, home ownership, and housing conditions in the Island, as Ministers committed to in the Strategic Plan."
The Treasury and Resources Minister, Senator Philip Ozouf, said “We want the dream of home ownership to be realisable by as many Islanders as possible. This scheme tackles the specific obstacle of the high deposits required to secure bank lending and creates opportunities for those families who would otherwise not be able to afford it, to own their own homes.
“Housing our local community is crucial to the continued development of a sustainable, long-term future for our Island and this includes supporting affordable and first-time buyer home ownership.
”The Treasury has allocated £3 million initially, and I hope that once this pilot scheme is completed and fully assessed we will be able to provide further support to eligible Islanders who need it.”
Islanders who are interested in finding out more about the scheme should contact the Affordable Housing Gateway on 01534 449080.