Castle Trust helps divorcing couples with its equity mortgage

Castle Trust, is planning to help couples who are divorcing or splitting up with its equity mortgage, which enables those with at least 40% equity in their home to release 20% of the value, with no requirement to make monthly repayments.  This could enable a couple splitting up to keep their existing property where one partner can continue to live whilst releasing equity to help the other buy a new home.   

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.

In addition to not requiring monthly payments, the other benefits of using a Castle Trust mortgage are:

the stability of long term funding with a term of up to 30 years
no early repayment charges
reduced exposure to rising interest rates

Sean Oldfield, Chief Executive Officer, Castle Trust 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.”   

New research from Castle Trust reveals that in 18% of divorce cases, couples sold their marital home, with 20% losing money of on average £34,000. In 34% of divorces one or more of the partners could not afford to buy another home with 15% of cases seeing both partners unable to afford a new home.

Similarly, one in three people (33%) would be concerned about the impact a divorce would have on their ability to afford a mortgage.

Around 41% of divorcees say that the lifestyle they can afford was adversely affected financially when they split up.

For further information on Castle Trust’s Partnership Mortgage, visit castletrust.co.uk.