Jersey mortgage lenders asked to follow UK support

Deputy Elaine Millar said Jersey should follow the UK with its mortgage charter

The Government of Jersey has asked banks and mortgage lenders to follow the UK in providing "short-term support" to resident mortgage holders.

The UK Mortgage Charter aims to help those struggling "in the face of rising interest rates".

Jersey mortgage providers have been asked to confirm whether they would adhere to the charter to help avoid repossessions.

Deputy Elaine Millar, the Assistant Chief Minister with responsibility for Financial Services, said the Council of Ministers was monitoring the situation "where we have high inflation and rising interest rates".

'New flexibilities'

She said "we are committed to helping people address the cost of living".

Ms Millar said the UK charter set out the "standards lenders will adopt when helping their customers".

"Its signatories are committing to providing borrowers with new flexibilities to manage their mortgage payments over a short period, and I have written to lenders asking them for confirmation that they will do the same in Jersey," she said.

Support the charter suggests includes reducing monthly payments and moving to a new mortgage deal at the end of their existing fixed rate deal without another affordability check.