Marsden Building Society has announced new changes to its Guernsey mortgage portfolio with reduced rates, capital raising and interest-only options.

The Lancashire-based society has implemented changes to its affordability model for older borrowers, meaning customers could potentially borrow more than previously.

Marsden is currently the only lender in Guernsey that offers mortgage solutions in retirement, as well as interest-only options across most of its mortgage portfolio.

Working closely with SPF Private Clients, the society’s refreshed mortgage range is aiming to improve accessibility to retirement and residential lending solutions for Guernsey residents.

Changes include increasing the maximum age at the end of the term on retirement products to 90, while the maximum loan amount has also been increased from £750,000 to £1.25m for both retirement and residential mortgages.

Retirement mortgage customers may also be eligible to raise capital in certain circumstances, including assisting their children onto the property ladder. Up to 5% of the property value at a maximum £37,500 can be borrowed for lifestyle, with the reason for raising capital being provided as part of the application.

“We’re conscious of the financial pressures homeowners are currently facing, particularly with increasing interest rates and the ongoing cost of living crisis,” Marsden Building Society chief executive, Rob Pheasey, said. “We’re therefore pleased to say that, in making changes to our affordability model, we’re able to offer our Guernsey customers more flexibility and reduced rates, compared to our previous mortgage products.

“We’re continuing to work closely with SPF’s mortgage advisers to ensure our products are tailored to meet the specific needs of Guernsey customers.”

SPF managing director, Pierre Blampied, added: “We continue to look at new products for Guernsey-based on the market conditions and the fact that our mortgage market does not have specialist lenders unlike onshore.

“It is pleasing that Marsden Building Society has assisted in the high net worth lending space especially being a further option with interest only lending.”

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