The study, which was conducted before the government launched its Help to Buy equity loan programme, found around 80 per cent of mortgage holders would like to see their lender introducing more creative solutions to mortgage finance.
These findings reveal that 66 per cent of people think that although the mortgage products on offer are plentiful they lack variation and 79 per cent of people would like to see increased innovation.
The government has launched its equity loan scheme – Help to Buy – which started on April 1 and offers a 20 per cent equity loan towards the purchase of a new-build home. Castle Trust supports the initiative, which mirrors private sector equity loans including Castle Trust’s Partnership Mortgages which provide a 20 per cent equity loan for those looking to buy an existing home.
Sean Oldfield, chief executive officer, Castle Trust said: “There is strong demand and interest from borrowers in more creative solutions to housing market issues including the need for large deposits and the potential risks of homeownership.”
Around 37 per cent of homeowners would welcome the opportunity to reduce their monthly mortgage commitments through equity loans, the research shows.
A further 53 per cent of mortgage holders also say they would consider it ‘uncompetitive behaviour’ if traditional lenders chose not to offer equity loans alongside their existing mortgages.
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