Jersey first-time buyer loan plan 'needs investigating'
- 4 April 2013
- From the section Jersey
More details are needed for how a first-time buyer loan scheme could affect Jersey's housing market, a States review panel has said.
Under the plans, the government could lend money to islanders looking to get on the property ladder.
If islanders can save a 5% deposit, the States would offer an interest free loan to help them secure a mortgage.
The Corporate Services Scrutiny Panel raised concerns it could actually fail to help those it aimed to help.
The members have asked for more information on what happens if a homeowner defaults on their mortgage or wants to sell their property before the terms of their loan expire.
They also want the possible impact of the scheme on other house owners and the overall market to be investigated.
The panel asked for these details to be released before States members debate plans for a six-month trial of the scheme involving up to 100 islanders.