Castle Trust unveils Flexible Zero Mortgage
The product, which is designed for buy-to-let investors and other high net worth clients, does not require monthly payments of principal or interest, while every case is underwritten and priced on its own merit.
Interest is rolled up until maturity or redemption – whichever comes first.
Sean Oldfield, chief executive of Castle Trust, said: “We are in the business of complementing the products other lenders offer rather than competing with them head on.
“Flexible Zero, in common with our equity loan products, can sit in a second charge position and help customers to release capital without disturbing what is often a very satisfactory existing mortgage arrangement.”
Castle Trust has also withdrawn its Partnership Mortgage, which was designed for first-time buyers.
Oldfield added: “Government intervention has radically improved the prospects for new purchasers and our product simply isn’t selling in sufficient volume to make its continuation worthwhile.
“Today, the customers who are driving our rapid growth are high net worth individuals and buy to let investors who value the fact that our products can dramatically improve capital efficiency.”