View more on these topics

Castle Trust launches ‘hunting licence mortgages’


Castle Trust has launched a flex-to-buy mortgage to help landlords complete quickly on new purchases when the opportunity arises.

Flex-to-buy – or ‘hunting license mortgages’, as the lender refers to colloquially – are standby loans secured against the value of an existing buy-to-let property.

The facility can be drawn down at short notice when the borrower needs to deploy funds quickly and simply, such as at an auction.

No interest is charged until funds are drawn and all interest is rolled up and paid at redemption – so there is no cashflow strain during the period of the mortgage.

Castle Trust says the minimum facility is £250,000 and the maximum is £5m, with more by negotiation.

The cost is a flat fee of 2 per cent to secure the undrawn line.

The 12-month loan term does not start until the first tranche is drawn and there are no early redemption charges six months after the first tranche is drawn.

Castle Trust executive director Matthew Wyles says: “Landlords can create a lot of value by being able to move quickly on a purchase. The flex-to-buy product gives active investors an ability to sign contracts at the drop of a hat, secure in the knowledge that they have committed funding already in place.

“The condition of the property being acquired is irrelevant because the flex-to-buy is secured on existing assets. The facility can be renewed annually if required.

“Our research has confirmed that there is a clear gap in the market for this type of product and we are looking forward to working with our intermediary partners to create real competitive advantage for them and their clients.”



No monthly payments on Castle Trust Flexible Zero loan

Castle Trust has launched a new product in which borrowers do not make any monthly payments of principal or interest. Instead, the interest is rolled up and paid with the principal at maturity or redemption. The Flexible Zero is a second charge loan although first charge is available on buy-to-let and investment property. Terms of […]

Upton promoted to Castle Trust head of sales

Castle Trust has promoted Alex Upton to the position of head of sales. Upton has been at the equity loan specialist since November 2013 serving as a business development manager. Prior to joining Castle Trust, she worked for nine years as business development manager at Abbey for Intermediaries, which has since rebranded to Santander for […]


Buy-to-let Watch: Why now for rental cover calculation tweaks

The buy-to-let market has grown rapidly in recent years, with landlords, lenders and brokers all benefitting from this, writes OneSavings Bank sales and marketing director John Eastgate. Headwinds are all too apparent however, and we are now in a world where politicians and regulators have intervened (or suggested that they might) in an attempt to […]


Nemo Personal Finance stops new lending

Principality Building Society has pulled out of the second charge market after deciding to stop new lending through Nemo Personal Finance. Nemo, one of the biggest lenders in the second charge sector, will focus on its current customers and says it will honour its existing pipeline of business. Sources say Principality believed the market was […]

Guide cover

Guide: Johnson Fleming produces auto-enrolment checklist

For a job as big as managing the auto-enrolment changes, it’s important to know what has been completed and what still lies in front of you to give you the reassurance that everything is in hand. Getting the planning and project management right at the outset can help you see the path ahead and ensure everyone knows their roles and responsibilities. To help with this, Johnson Fleming has produced a checklist outlining every step that needs to be taken when preparing for auto-enrolment.


News and expert analysis straight to your inbox

Sign up

Why register with Mortgage Strategy?

Mortgage Strategy continues to be the market-leading B2B mortgage publication in the UK, and provides trusted, independent insight with the aim of helping, promoting and analysing the latest developments for mortgage professionals.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Mortgage Strategy Events
Be the first to hear about our industry leading conferences, awards, webinars and more.

Research and insight
Take part in and see the results of Mortgage Strategy's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now