Castle Trust's Partnership Mortgage: Should you trade cheaper mortgage payments for a slice of equity? | Mail Online

Castle Trust's Partnership Mortgage: Should you trade cheaper mortgage payments for a slice of equity? | Mail Online

The battle for first-time buyers to get on to the property ladder is harder than ever with lenders demanding big deposits and with homes, despite declines, still high compared with incomes.

That means repayments are unaffordable for many.

The question then is would you trade cheaper mortgage payments now for giving up a slice of the equity in your new home and some of the gains you might make in future? If so, a revolutionary new type of mortgage coming soon will give you the opportunity to do just that.

Castle Trust, a new company, is set to launch a ‘partnership mortgage’ as soon as it has funding in place and has received authorisation from the Financial Services Authority.

The partnership mortgage works like this: The buyer puts down, for example, a 20 per cent deposit and the Castle Trust chips in with another 20 per cent, meaning the buyer needs a mortgage of just 60 per cent of the property’s value.