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First-time buyer mortgage lender to launch in October

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  • 30/08/2012
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First-time buyer mortgage lender to launch in October
Castle Trust has revealed it will be launching into the mortgage market on October 1.

From that date, the lender will offer partnership mortgages and HouSAs, which are investments linked to national house prices.

Sean Oldfield, CEO of Castle Trust, said: “There has been great interest in the business we are planning to launch and we’re incredibly excited to be able to tell customers and partners exactly when we’re opening our doors to investors and home owners.

“This really will be a momentous event in the residential property market because we will be offering investments and mortgages the like of which have simply not been available until now. Castle Trust will be a shot in the arm for the UK housing economy.”

Castle Trust’s partnership mortgage offers interest-free loans of up to 20% of the value of the property, enabling borrowers to access 60% LTV mortgages from other lenders if they already hold a 20% deposit.

The loan has no monthly payments, with Castle Trust taking 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.

The product will only be available via independent intermediaries who have passed Castle Trust’s professional development accreditation from the Chartered Insurance Institute.

Castle Trust is raising some of the money it will use to fund mortgages by offering house price-related Isas. Its Income House price Savings Account (HouSA) is an investment for three, five or 10 years based on the performance of the Halifax House Price Index. It pays a fixed income every three months. It also offers a Growth HouSa also with returns based on the Halifax House Price Index.

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