Local lender launches new long-term, fixed rate product

Thursday 23 August 2018

People will now have access to a new five year, fixed rate product for purchase or remortgage, as largemortgageloans.com are introducing a new offer.

The Family Building Society was introduced to the island at the beginning of 2017 by the mortgage broker, as it offers specialist products, tailored to specific situations such as later life lending and family mortgages.

The new five year, fixed rate mortgage is available now and comes at an historic time for interest rates. The Bank of England’s Monetary Policy Committee voted to raise rates by 0.25% in August 2018 to 0.75% meaning they are at their highest level since March 2009. 

Pictured: Paul Welch

Paul Welch, Founder and CEO of largemortgageloans.com, said people are increasingly aware of the long-term view: “We always urge our customers to think long-term when they’re taking out a mortgage, but the reality of rising interest rates has focussed people’s minds towards certainty and stability.

"We have seen a trend away from the base rate tracker mortgages that have been so popular for the last decade, towards long-term, fixed rate products. As a result, the Family Building Society has launched this new product specifically for Guernsey, and we are delighted to see more choice in the market.”

In addition to its new mortgage product, the Family Building Society has increased its maximum loan to value (LTV) ratio from 65% to 70% across all products available in Guernsey with the exception of the Retirement Lifestyle Booster, which remains at 25%.

The Family Building Society’s Michelle Parry-Bunter, Business Development Manager for Guernsey, says this move has come as a result of demand. 

“We’ve now been lending into Guernsey for 18 months, and our knowledge of the market is growing with every transaction. Alongside our partners largemortgageloans.com we hosted an event in Guernsey earlier this year on the topic of Later Life Lending. This allowed us to talk face-to-face with around a hundred people and a number of States members to really understand the unique needs of Guernsey borrowers. Several applications are already being processed as a result of that event.”