The offshore bank and trust company said its comprehensive range of mortgages were designed with local professionals in mind – and could help buyers or home-owners looking for a ‘better deal, improved service and more flexible solutions’.
‘Butterfield has spent time preparing its residential mortgage offering for Guernsey and Jersey to ensure our products fit the needs and lifestyles of local professionals and residents,’ said Edward Jones, Butterfield’s head of lending for the Channel Islands.
‘We recognise that buying a home is a significant decision and one of the greatest financial investments many people make. As such, we are pleased to provide a personalised and dedicated mortgage service that exemplifies the best-in-class standard Butterfield is known for.
‘We have been able to streamline our application processes and can on-board clients in just a few days. We look forward to welcoming new clients to Butterfield and building on our existing presence in the Channel Islands.’
Butterfield said all lending decisions would be made locally with on-island experts who understand the local markets. An efficient, responsive and reliable service is being promised.
Lending based on minimum household income amounts and not salary multiples is part of the offering – which Butterfield said provided clients with an opportunity to increase the amount they are able to borrow.
The product range includes the ‘lifestyle mortgage’ – often referred to as a call account mortgage – that operates similarly to an overdraft facility. With this product, savings can be offset against the mortgage, reducing monthly repayments. Should those savings be required at short notice then they can be drawn down without penalty.
A minimum household income of £120,000, plus an 80% loan-to-value and minimum £400,000 loan, is required for the lifestyle mortgage.
There are also a range of fixed rate mortgages designed to provide the security of knowing what payments will be for longer, and a base rate tracker mortgage designed to allow clients to take advantage of low interest rates. Both types of products require a minimum household income of £80,000 with a loan-to-value of 80% and a minimum loan of £400,000.
Bespoke solutions such as buy-to-let and interest-only mortgages were also available subject to discussion, said Butterfield.
The launch of Butterfield’s mortgage offering was welcomed by the managing director of mortgage broker SPF Private Clients.
‘It’s always good to have an active new lender in the market,’ said Pierre Blampied.
‘We have some transactions with them in play already. It is good news for Guernsey’s mortgage market. They are going to be competing at the high net worth and professional end of the market.’