We give your clients the option to roll up some or all of the interest.  Any interest which is capitalised is not subject to a stress test, which increases the client's borrowing capacity, particularly on lower yielding assets.

Case study

We worked with a broker to place a limited company application, with three individual applicants, looking to purchase a desirable maisonette in Fulham for £400,000.  The clients wanted to borrow £295,000 to buy the property but the rental value was only £1,495 per month and so the numbers did not stack up.

As the clients were experienced landlords, we were able to structure a solution by splitting the balance and enabling the clients to roll up interest on part of the loan and service the interest on the remainder.  Because there were no monthly payments due on the roll up element of the loan, this portion was not subject to a stress test, which meant that the serviced loan element met the required stress test.  As a result, the clients were able to invest in a sought after property with robust potential for capital gains even though it delivered a low rental yield.

Our products

Our mortgage products are available for a range of purposes.

Mortgages
This website is for authorised intermediaries only. This information has not been approved for use with customers and is not intended for public or customer use. Your clients’ property may be repossessed if they do not keep up repayments on a mortgage or any other debt secured on it. Loans are subject to status, terms and conditions.

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Castle Trust is the trading name of both Castle Trust Capital plc (company number 07454474) and Castle Trust Capital Management Limited (company number 07504954). Castle Trust is authorised and regulated by the Financial Conduct Authority, under reference numbers 541910 and 541893. Registered office: 10 Norwich Street, London, EC4A 1BD. Registered in England and Wales.

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This website is for authorised intermediaries only. This information has not been approved for use with customers and is not intended for public or customer use. Please confirm that you are an intermediary before accessing information on this website.

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