A scheme, similar to the Mortgage Charter which is in place in mainland UK, has been voted down by Jersey’s States Members 24 to 19.
Jersey Deputy Geoff Southern had called for the introduction of a 12-month grace period for those struggling to make repayments.
However, ministers branded the proposition ‘obsolete’, as Deputy Elaine Millar, Assistant Chief Minister with responsibility for financial services, had already written to mortgage lenders who are active on the island asking them to honour the Chancellor’s Mortgage Charter.
One of the promises within the Charter is to allow struggling borrowers to switch to an interest-only repayment plan for up to six months, without it affecting their credit score.
Lenders can also extend the terms of mortgages allowing borrowers to spread cost. At present over 85% of UK lenders have signed the Charter.
Borrowers struggling with repayments are urged to speak to their lenders as soon as possible.
