The lender, backed by JC Flowers, is awaiting FSA authorisation and plans to offer homebuyers loans of up to 20% of the value of the property, enabling borrowers to access 60% LTV mortgages from other lenders.
The loan has no monthly payments, with Castle Trust taking a 40% share of any increase in the property’s value upon its sale or accepting a 20% loss if there is a fall in value. It will also offer investment products.
Xit2 will deliver the lender’s valuation data in a single format, with the aim of offering time and cost efficiencies in managing its panel of surveyors.
Mark Blackwell, managing director of xit2, said: “In a truncated market, greater importance is placed on the quality of third party suppliers and xit2 provides the rigorous oversight that Castle Trust will need. It will allow Castle Trust to demonstrate to regulators that it is meeting its TCF obligations to closely monitor the performance of their suppliers.”
James Neave, head of lending at Castle Trust, said: “Control and monitoring of service levels are crucial to Castle Trust, so it is vital we partner with a technology provider who gives us confidence they will meet our management needs and minimise our risk. The Valuation Exchange fits the bill perfectly – it provides flexible technology catered to the requirements of valuations as well as vital risk management controls.”
