Castle Trust insists the Government’s encroachment into the shared equity sector will not pose a threat to its business model.
The Government’s Help to Buy shared equity scheme requires borrowers to hold a 5 per cent deposit and offers them a 20 per cent Government loan. Castle Trust product requires a much larger commitment in the form of a 20 per cent deposit, however the Government scheme is restricted to new builds.
The Association of Mortgage Intermediaries chief executive Robert Sinclair has questioned whether the Government initiative undermines Castle Trust’s offering.
He says: “This product, which looks like an imitation of the Castle Trust product, shows a Government that has been listening to the market, but may have cut the ground from under that commercial product.”
Castle Trust chief executive Sean Oldfield says “The Government’s initiative exactly supports our approach to Partnership Mortgages to help people afford to buy their own homes. As well as the Government support for those buying a new property, home buyers looking at existing properties can come to Castle Trust today for help.
“There are around 25 million existing homes and just over 100,000 new homes built per year, so we are excited to be providing homebuyers a huge range of purchase opportunities alongside the Government.”