Mortgage lender cuts maximum loan

First time buyers could find it more difficult to get on the property ladder in Guernsey in future.

One of the island's mortgage companies has announced a reduction in the level of its loans.

Guernsey Home Loans has blamed the credit crunch for a drop in business at its UK parent company, the Kent Reliance Building Society.

Island home buyers will now only be offered up to 75% of the value of a property, rather than the previous 90%.