New Provider to Offer 95% Mortgages

16th January 2017

A new mortgage lender is being launched in Guernsey, led by Paul Welch, an islander who has returned after nearly 30 years in the industry at the highest level in London.

The Guernsey Financial Services Commission has approved his application to offer 95% house mortgages, and local deputies such as Michelle Le Clerc believe it can “only be good” for Guernsey.

Paul Welch, of largemortageloans.com, explained in a Radio Guernsey interview that Bank of England guidelines will require some of the mortgages to be guaranteed by the “bank of Mum and Dad”, as added security, and the interest rate may be 1% or so higher than headline mortgages.

However the new company primarily wants to offer buyers in Guernsey similar financial products to those already available in the UK, including, incidentally, lending facilities for people aged 65 to 89.