Understaffed, undersupported in tech and not getting better, says leading mortgage broker
Guernsey’s lenders have defended their performance in the face of criticism that mortgage approvals are dragging on for months, insisting that the experience varies widely across the market.
Estate agents on the island have pointed to rising frustration among clients, reporting that approvals can take as long as ten to twelve weeks once an offer is accepted. They also cite a shortage of mortgage specialists, adding pressure to buyers and sellers who must already contend with higher borrowing costs and limited housing stock in the market that saw £339 million of housing loans last year.
The Association of Guernsey Banks (AGB) acknowledged that some buyers had faced disappointing outcomes when trying to secure finance. It stressed, however, that this did not represent the situation across the entire sector.
In a statement, the AGB said it was “sympathetic” to those affected, but highlighted that “significant improvements to the customer journey have been delivered over recent years, underlining the importance of this market to local lenders.” The trade body also emphasised that, “indeed, relative to its population size, Guernsey has a comparatively high number of mortgage providers when measured against other island jurisdictions.”
Industry figures like Pierre Blampied, managing director of SPF Guernsey, however, aren’t seeing improvements. “I'm not seeing that to be honest with you,” he said to Mortgage Introducer. “There is no evidence to support that statement I would suggest.”
He also noted that while the mortgage process on the islands has traditionally been quicker than in the UK, delays have become more common. “Of late it has got a bit slower and it's partly due to banks being understaffed,” he said, pointing also to a shortage of surveyors and the challenge of obtaining home buyers’ reports.
Blampied reserved his strongest criticism for the legal process, which he said was compounding delays. “Because of our house buying process, which is completely different to the mainland UK, the biggest issue is from the legal sector where it seems to be we've moved by default not signing conditions of sale to later, very close to the purchase date. So I think that's the biggest problem we need to get back to that scenario.”
He also suggested that the islands’ relatively small size meant banks had been slower to invest in the technology and borrower portals now commonplace in the UK. “Because the islands are relatively small and we're sort of like a small town effectively, the banks haven't generally invested into the IT systems and portals, which you've got in the UK,” he said.
The AGB underlined that mortgage approvals are only one component of a complex chain. “There are multiple parties involved in a property transaction including the banks, estate agents, valuers and law firms,” it said. “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.”
With property prices elevated and affordability stretched, the debate over where delays originate - banks, surveyors, or the legal system - looks set to continue.
Guernsey’s property market: a world apart from mainland UK
The property market in Guernsey occupies a unique niche. Although shaped by many of the same forces that influence real estate across the British Isles - such as interest rates, supply and demand, and broader economic cycles - Guernsey’s status as a Crown Dependency gives its market a distinctly different structure and trajectory from the mainland UK.
A two-tier market: local vs. open market
The most striking difference is Guernsey’s two-tier housing system.
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Local market: These properties, about 90% of the island’s housing stock, are reserved primarily for island residents or those with strong local connections. Restrictions aim to ensure housing remains available and relatively affordable for Guernsey’s population.
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Open market: The remaining properties are available for anyone to purchase, including non-residents. These homes are often larger, attract international buyers, and carry a premium. The open market provides a pathway for wealthy individuals and families to establish residency in Guernsey, often linked to the island’s attractive tax regime.
This dual structure is unlike anything on the mainland UK, where property markets are open to all and restrictions are minimal (beyond planning rules).
