Jersey’s treasury minister has said the island’s government could offer tax breaks to homeowners if typical mortgage interest rates keep rising.
It is expected the Bank of England base rate will be further increased next month from its current rate of 2.25%.
That may add hundreds of pounds to some islanders’ mortgage bills.
One Jersey mortgage broker said some first-time buyers were deciding against getting on the property ladder due to the prospect of rising interest rates.
In September, Jersey’s States Assembly agreed a £56m plan to help islanders with rising living costs, but ministers have now said further financial measures could be brought forward if the economic situation worsens.
Asked whether those additional measures could include support for homeowners, Treasury Minister Deputy Ian Gorst said: “We really are actively watching what’s happening in the interest rate arena.
The interest cap is currently being reduced by £1,500 a year, and is due to be phased out by 2026.
Extending the scheme until 2027 would limit homeowners’ tax bills for longer than is currently planned.
Private tenants might benefit indirectly, as landlords would have fewer costs to pass on.
They have paid £300 to get out of their previous mortgage deal three months early, and have now secured a new, fixed-term mortgage deal for five years.
I was just so happy, so happy because I’ve saved myself hundreds, or maybe thousands of pounds she said.
“You’ve got to pay your mortgage – there’s no way out of that. You either pay that or you sell your house.
That’s the priority outgoing, really – isn’t it So everything else would have to suffer