LONDON, Sept 30 U.S. private equity firm JC
Flowers is investing 65 million pounds ($105 million) to help
establish a new British mortgage provider and investment company
called Castle Trust.
Castle Trust said on Sunday that it will provide UK
home-buyers with an extra source of funding in addition to bank
lending, as well as offering people the chance to invest in the
housing market through saving products linked to house prices.
Castle Trust will be chaired by Callum McCarthy, the former
chairman of the Financial Services Authority who is chairman of
JC Flower's European arm.
Under the company's lending scheme, home-buyers will take
out a regular mortgage but can also borrow 20 percent of the
cost of the house from Castle Trust. When they come to sell the
house or reach the end of their mortgage term, they will owe
Castle Trust 40 percent of any profit made on the sale.
Home ownership is popular in Britain but the cost of buying
a property has risen beyond the reach of some people after
lenders tightened borrowing terms following the financial
"Castle Trust aims to bring solutions to problems which have
too long affected the UK housing market," McCarthy said in a