Shannen Kerrigan is one of Cherry Godfrey’s fantastic mortgage advisors in Jersey and her focus is on first-time-buyers. We caught up with Shannen to answer some in-depth questions and get some of her expert advice on behalf of first-time-buyers.
Hi Shannen, could you tell us a little bit about yourself and your background in the mortgage industry?
I’ve worked in mortgages for about 10 years, from when I started at HSBC on the expat team. It was a bit of a baptism of fire, but it was a great experience. I moved because I wanted to do more residential mortgages for local people, but then COVID happened and we stopped having face-to-face appointments, which was my favourite part of the job, so I kind of lost my love for it and ended up moving on. The family ethos and client care that are so prominent at Cherry Godfrey made me fall in love with mortgages and helping people find thier dream homes again.
It sounds like a marriage made in heaven for you and Cherry Godfrey?
I really like it because now I can tell a client that another bank might be their best option. I work for the client, not the bank. We’re the only broker in Jersey that’s completely market-wide, meaning there’s no lender we can’t recommend. In the current market, the best lender completely depends on every person’s individual circumstance, so what you’re after really determines who we send you to. I am able to get to know my clients and help them find a product that is perfect for them, and get to work with them every step of the way.
As you specialise in helping first-time buyers, could you tell us about the unique challenges they face and how you guide them through the process?
First-time buyers face a lot of lender nervousness because of not having a track record of paying or servicing a mortgage. That’s why it’s crucial for first-time buyers to go to a broker. Sometimes, we see clients with loads of loans or stretched monthly outgoings, and we might have to tell them that now isn’t the right time to buy. It’s better to wait, save up, or reduce debt rather than risk a mortgage decline which would affect their credit and make it harder to get a mortgage in the future.
That’s such an amazing tip, and probably something a lot of first-time buyers aren’t aware of. Are there any other common misconceptions we could clear up?
One big misconception is the difference in rates between the UK and the Channel Islands. I often hear people say, “I’ve seen X bank offering X% rates,” and I have to explain that’s for the UK, whereas in Jersey, it’s more like 5.5%. There’s a massive difference. One positive thing I’ve seen more this year compared to last is that many first-time buyers can get the borrowing they need. But when they see their repayments based on current rates, they’re understandably hesitant. Many people I’ve spoken to are planning to wait a few months to see what lenders do with rates because, right now, it’s cheaper to rent than to buy. It’s crucial for first-time buyers to be well-informed.
Could you explain the process of working with a mortgage advisor, like yourself, from start to finish?
Absolutely. We start with a fact-finding meeting where I ask clients to bring their most recent payslips, and we discuss their financial circumstances - whether they’re renting, living at home, have any loans, or credit cards. It’s also important to see if they’re saving money each month because lenders need to know buyers can handle the financial responsibility. I then assess their borrowing options with each lender on the island and get back to them within a couple of days with their options. Keeping repayments down is often the main priority, so I might suggest a longer mortgage term - up to age 70 in the Channel Islands - to keep repayments manageable. I focus on lenders that meet their needs, whether it’s affordability or overpayment flexibility, and tailor recommendations accordingly.
That’s so insightful! It’s really clear how much you tailor your approach to each client.
Definitely. That’s why that first meeting is so crucial. No two buyers are the same, and it’s important to get a good understanding of their needs and goals. Especially when it comes to first-time-buyers, I want to make sure that they feel comfortable to ask any questions at all. This is all new to them, so by getting to know their goals and needs, I can better help guide them through the process. For example, I had a couple in asking about share transfers versus freehold, as they had heard their friends talking about it and didn’t know what it meant. It was great that they felt comfortable enough to ask me.
It is great when people can come to you with their questions and feel comfortable. For anyone reading who may also be wondering, could you explain: What are the pros and cons of Share Transfer versus Freehold or Flying Freehold?
With Share Transfer, you don’t own the property or land outright; instead, you own shares in a larger company that owns the property. This means you may need permission from the company to make changes like knocking down walls or even getting a pet. But, for first-time buyers, Share Transfer can be less overwhelming because the management company handles things like insurance and maintenance. In contrast, with Freehold or Flying Freehold, you’re responsible for everything yourself, which can be a lot to manage if you’re new to property ownership.
It sounds like Share Transfer could be a good “training house” for first-time buyers.
Exactly. It’s a great way to ease into property ownership without being overwhelmed by all the responsibilities. I’m selling my Flying Freehold property right now, and I wouldn’t be opposed to buying Share Transfer because it’s less hassle.
Is there anything about the current financial climate, interest rates, or property prices that first-time buyers should be aware of?
Many first-time buyers underestimate their borrowing capacity, but the current market is actually a buyer’s market with prices coming down. Even if you think you can’t afford to buy, it’s worth speaking to a broker because you might be pleasantly surprised at how much you can borrow. Rates won’t stay high forever, and paying into a mortgage means your money is going back into your pocket instead of paying rent.
That’s such an important message! So, for someone thinking about buying their first home, what’s the best piece of advice you would give them?
Aside from coming to see us at Cherry Godfrey, sign up with estate agents and tell them what you’re looking for. Not all properties are listed online, and agents might have listings that aren’t quite ready to go public. Also, don’t be afraid to offer less than the asking price. It might feel awkward, but in this market, you should only pay what you’re comfortable with. You’ve got to do what’s right for you. Sellers need to be prepared to accept lower offers in the current climate because that’s the reality we’re in.
What would you say is the most rewarding part of your job, especially when working with first-time buyers?
It’s got to be seeing people get their mortgage offers. Whether it’s their first home or they’ve been turned down elsewhere, it’s incredibly rewarding to help them secure their loan. I’ve worked with clients who couldn’t get a mortgage directly with a bank but were approved through us because we have access to every lender and all their products, so can find the right one for our clients and find options that they may not have been able to find on their own. know. So, it’s all about that moment when they realise they can actually own a home.
That must feel so rewarding! Is there anything else you’d like to add?
I’d just reiterate to first-time buyers: Don’t give up. There’s a lot of negativity in the news, but you might be surprised at what’s possible. It’s worth speaking to a broker just to explore your options. Also, we will help clients navigate through all of the Banking and Mortgage jargon, help fill out applications and there is no such thing as a silly question so people should never ever feel silly or embarrassed asking us any mortgage related questions. We’re here to help.
Thank you so much for your time, Shannan.
It was a pleasure.
