Mortgage lending up 23% in 2021

LENDING for house purchases rose by 23% last year, with the industry seeing a total of £382.7m. loaned for 858 transactions.


Mortgage broker SPF Private Clients reported that the leading house purchase lender during the year was Lloyds, who loaned £99.3m. – which was less than in 2020 – followed by HSBC, £60m, which was an increase of 142% over the previous year. Both RBS (including NatWest) and Skipton lent more than £50m., while Barclays loaned £44.6m.

Among the private banks, Kleinwort Hambros led the way, followed by Butterfield and Investec, which increased its lending during the year.

‘On the mainland the older borrowers’ market is a growing market and fortunately we have one lender, Marsden Building Society, offering products locally for this group, along with standard mortgages and interest-only borrowing,’ said Pierre Blampied of SPF Private Clients. ‘Their position in the market and that of the private banks, shows that there is an appetite for “non-standard” mortgages.’

Mr Blampied said that estate agents expected the market to remain strong this year, but there were concerns about supply. ‘While it is good to see the States giving special dispensation to change out-of-use hotels into residential properties and the Guernsey Housing Association looking to increase the number of properties they have, this will all take time.’

Interest rates remain low and Mr Blampied said all local providers were eager to lend and had products to suit clients from first-time buyers and growing families, to borrowers of retirement age and high net worth individuals with complex requirements.

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