Castle Trust to help divorcing couples
In 18% of divorce cases, couples sold the marital home with 20% losing an average of £34,000, 34% of divorces saw one partner unable to buy another home and in 15% of divorces both partners found themselves in this situation.
But Castle Trust says using its equity mortgage could help couples who are divorcing or splitting up – helping one partner to stay in the existing property and the other buy a new home using the interest free loan.
Because Castle Trust charges no rent or interest on their loan, it shares 40% of any increase in value on the sale of the property from the date when the equity mortgage was taken out. If the value of the home declines or stands still, borrowers only repay the original loan amount with no interest at all.
Sean Oldfield, Castle Trust chief executive officer, said: “Divorce can be one of the most stressful life experiences, often made worse by financial problems which develop as a consequence.
“Our research reveals that many divorcees had to sell their homes at a loss because they were splitting up.
“Our equity mortgage can help couples who own their own homes reduce the financial shock resulting from splitting up, and move on with their lives with fewer worries.”