Castle Trust said on Sunday that it will provide UK home-buyers with an
extra source of funding in addition to bank lending, as well as offering
people the chance to invest in the housing market through saving
products linked to house prices.
Castle Trust will be chaired by Callum McCarthy, the former chairman of
the Financial Services Authority who is chairman of JC Flower's European
arm.
Under the company's lending scheme, home-buyers will take out a regular
mortgage but can also borrow 20 percent of the cost of the house from
Castle Trust. When they come to sell the house or reach the end of their
mortgage term, they will owe Castle Trust 40 percent of any profit made
on the sale.
Home ownership is popular in Britain but the cost of buying a property
has risen beyond the reach of some people after lenders tightened
borrowing terms following the financial crisis.
"Castle Trust aims to bring solutions to problems which have too long
affected the UK housing market," McCarthy said in a statement.
source: nytimes.com
