Castle Trust

Castle Trust is a financial services firm focused on the UK housing market, launched on 1 October 2012. The business is backed by U.S. private equity firm, J.C. Flowers, which has invested £65m into the business. Castle Trust is chaired by Sir Callum McCarthy, the former chairman of the Financial Services Authority.
The business offers investments that track the Halifax House Price Index, and using the funds raised from these investors to offer shared equity which funds 20% of the cost of the house in return for a share of the profits (or indeed a portion of the losses) when the house is sold.
As well as Sir Callum McCarthy, the board includes former government minister Lord Deben, non-executive director of HM Treasury, Dame Deirdre Hutton CBE and David Morgan A.O.
Products
Partnership Mortgages
The Partnership Mortgage is a mortgage for 20% of the purchase price (or valuation) of a property and requires no monthly payments for the whole mortgage term, which is a maximum of 25 years. A minimum 20% deposit (or equity) is required, resulting in a maximum LTV for the first charge mortgage of 60%, which must be on a repayment basis. In exchange for paying no interest, when the Partnership Mortgage is redeemed, assuming this is on sale of the property or at the end of the mortgage term, the amount to be repaid will be the amount borrowed plus 40% of any increase in the value of the property, or less 20% of any fall in value. If improvements have been made, any increased value from these will be deducted before calculating the profit or loss. If the mortgage is repaid other than on the sale of the property or at the end of the mortgage term, or if it was taken out as a remortgage or further advance, Castle Trust will not share in any loss.

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