Banks say mortgage delay issues do not affect all

The AGB says it is "sympathetic" to those who experience a negative outcome when buying a new home

Guernsey's banking industry says delays in mortgage approvals does not "reflect the experience for all lenders and clients".

Estate agents in the bailiwick said delays were adding "extra stress" for buyers and sellers in recent years.

One agent said lenders would take 10 to 12 weeks to approve a mortgage after an offer had been accepted, and another said there was a shortage of bankers specialising in mortgages.

The Association of Guernsey Banks (AGB) said it was "sympathetic" to those who experienced a negative outcome when buying a new home.

It said: "Significant improvements to the customer journey have been delivered over recent years, underlining the importance of this market to local lenders.

"Indeed, relative to its population size, Guernsey has a comparatively high number of mortgage providers when measured against other island jurisdictions."

The AGB said it was not just down to the bank when it came to purchasing property.

It said: "There are multiple parties involved in a property transaction including the banks, estate agents, valuers and law firms.

"Because of higher house prices and higher interest rates, buyers are often looking to maximise their borrowing more so than in the past - within this context, it is incumbent on the banks to be prudent and ensure responsible lending."