New UK firm Castle Trust is seeking regulatory approval to offer mortgage products and other investments, as the government aims to widen mortgage availability for consumers to improve the weakened real estate market.
According to a Reuters report, private equity investor JC Flowers helped fund the launch of its mortgage products. Castle Trust was established after the British government looked into ways to improve the UK housing market, which saw a slowdown due to large cash deposits for potential home buyers when acquiring loans.
In May, the Council of Mortgage Lenders noted that banks in the UK were in talks with homebuilders to find ways of helping buyers overcome tight lending conditions to get a hold on the real estate market.
Many banks have tightened their lending criteria in the wake of the credit crunch, partly attributed to stricter regulations. As a result, most first-time buyers need to secure higher cash deposits to obtain home loans, which hurts the demand for mortgages and results in a sharp decline in the UK housing market.
To contact the journalist, you may send your message to editor@propertyguru.com.sg