The incentive applies to all applications submitted and accepted by close of business on 31st August 2013. The fees waived are the arrangement fee (normally 2%), valuation fee and telegraphic transfer charge. In addition, solicitor’s fees will be waived if the client uses the Castle Trust scheme.
Castle Trust will lend 20% of the property value with no monthly servicing cost. The maximum LTV of the total of the primary mortgage and Castle Trust’s loan is 80%.
There are no monthly payments and Castle Trust only receives any “rent” on its share of the property when the property is sold, the loan matures or when the borrower decides to repay.
The “rent” is not guaranteed – instead Castle Trust accepts a share of the increase in the value of the property from the date their loan is taken out.
Jeff Knight, Director of Propositions at Castle Trust says:
“Using our Partnership Mortgage for equity withdrawal is proving really popular amongst intermediaries. It is becoming increasingly established as a really useful financial tool for a range of client needs including divorce, business investment, tax planning or helping children onto the property ladder.”
“This incentive will also help those seeking to fund school fees or university accommodation in the autumn. The timing of this incentive is perfect for such clients”.
