Its nationwide survey, which endorsed the shared equity revolution with the launch of the Help to Buy scheme, found 37% of homeowners would welcome the opportunity to cut mortgage costs through shared equity schemes.
Help to Buy provides a 20% shared equity loan towards the purchase of a new-build home and perfectly complements Partnership Mortgages, launched by Castle Trust last October, which provide a 20% shared equity loan for those looking to buy an existing home.
Castle Trust supports the drive for greater innovation in mortgage products – its research shows that two thirds (66%) of mortgage customers believe there is little differentiation between current mortgage products.
Four in five mortgage customers (79%) want their mortgage lender to offer more creative ways to make homeownership easier, the research showed. And nearly half (46%) of them would recommend their lender to a friend if they provide these innovative mortgage products.
Sean Oldfield, chief executive officer, Castle Trust said:
“There is clearly strong demand for more innovation in the mortgage market. Given the Government’s recent endorsement of shared equity through the launch of Help to Buy, the Partnership Mortgage model is very much in the spotlight. We are constantly trying to build on our innovative products and we’re delighted to see the Government following suit.”
Londoners (70%) and those in Scotland and the North West (69%) are the most concerned with a lack of differentiation in mortgage products. Those in Eastern England were most content with the choice of mortgage products, but only one in four of them say they are happy with the choice of mortgage products available.
Sean Oldfield said:
“The Government’s initiative exactly supports our approach to Partnership Mortgages and is helping people to buy a new home. The Partnership Mortgage helps lenders reduce risk and enables many more responsible home buyers to secure the mortgage they want. Central to our business is a determination that customers are treated fairly at all times. That is why Partnership Mortgages are only available through fully trained and qualified independent mortgage advisers.”
