Former Nationwide head of corporate accounts Paul Howard has joined Castle Trust as managing director for mortgages.
Howard left Nationwide at the end of 2011 as a result of a management reshuffle and has been an industry consultant since.
He says: “Castle Trust’s partnership mortgage is the most innovative concept to surface in the market for years – the practical applications are countless.
”For example, many interest-only customers who need to reduce the size of their mortgage and shift to capital repayment without increasing their monthly payment will see Castle Trust as an answer to a prayer. I can’t wait to get started.”
Howard’s appointment comes just weeks after Matthew Wyles, his former boss at Nationwide, joined Castle Trust as the board’s senior adviser.
Castle Trust chief executive Sean Oldfield says: “Paul knows the intermediary market inside out – he will make an invaluable contribution in helping me and the team focus our business development effort to best advantage.”
The lender launched in June 2011, headed up by former FSA chairman Sir Callum McCarthy and backed by private equity investment firm J.C Flowers and Co.
Its partnership mortgage allows borrowers who are under 55 and have a 20 per cent deposit to take a further 20 per cent from Castle Trust in order to qualify for 60 per cent LTV repayment mortgages from a separate lender.
The loan, available on properties valued up to £2m, is interest free for a 25-year term but requires a repayment of the original sum plus 40 per cent of the capital gained on the property when sold. Castle Trust shares 20 per cent of any reduction in property value.
Last month, Money Marketing’s sister title Mortgage Strategy revealed Castle Trust is looking to launch a new partnership mortgage where borrowers only need a 10 per cent deposit.
London & Country director of mortgages David Hollingworth says: “Paul knows everyone in the market so with Castle Trust looking to make a drive into the market it is a sensible idea to recruit someone with his experience. And, crucially, he has worked a lot with Matthew in the past so that again makes sense.”