Is new 'profit sharing' mortgage a mistake?

David Davies/PA Wire/Press Association Images

A new mortgage is being launched by investment company Castle Trust in October. For those with a 20% deposit, it will match the sum without charging any interest on this cash. The buyer is then free to track down a 60% mortgage deal.

The company argues that it provides access to the most competitive deal, but in return, homeowners will have to pay a proportion of the increase in the value of the property. So is this a disaster waiting to happen?

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