Co Ownership Mortgage in Northern Ireland 2024
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Co Ownership Mortgage in Northern Ireland 2024
The Co-ownership Scheme can be a great way for First Time Buyers to get on the property ladder. We explain how the scheme works and how Mint Mortgages & Protection can help.
What is the Co-ownership Scheme?
The Co-Ownership scheme is similar to shared ownership in England, but it’s specific to Northern Ireland. It’s a not-for-profit organisation that helps people become homeowners who wouldn’t otherwise be able to, in terms of getting a deposit or borrowing enough money to get the homes they need.
There are three main options that they offer. The first one is the main ownership option, where you start by filling in a calculator on the Co-Ownership website to determine the value of a property you could purchase through the scheme.
Once you’ve chosen your home, you can buy 50% of it through a mortgage, and the rest is owned by Co-Ownership, and you pay rent on that share. The goal is to eventually buy the property back from Co-Ownership – either in parts over time. This process is known as staircasing. Or you potentially buy the remaining 50% during your next mortgage review if your affordability allows.
Please Note – the calculation is an indication, and is subject to change.
The second option is ownership for over 55s, which is essentially the same but with slightly different criteria. It’s mainly for people who want to buy a new home but can’t afford to do so in one go.
The third option is Rent-to-Own, which is suitable for people who have the affordability but have had credit issues. In this case, the property is purchased by Co-Ownership and rented to the customer for up to three years, after which they can buy it directly from Co-Ownership.
What type of property can I look for?
The scheme is available on any property valued at up to £190,000 that is in good condition.
Are there any new criteria changes for Co-ownership NI 2024?
There have been a few changes to the criteria in recent months. The main requirements are as follows:
- Aged 18 and live in the UK, with Right to Reside in Northern Ireland
- Not currently owning any property or land
- You will live in the property
- Couples who will live in the home must apply together
- No payday loans or home credit in the last 12 months
- No debt relief orders, IVAs or bankruptcies in the last 6 years
- No outstanding bad credit e.g. CCJs or defaults
Is there an age limit for Co-Ownership in Northern Ireland?
There’s no maximum age, and the over 55s scheme is specifically targeted at older people who want to move home but are finding it challenging.
It supports those who want to buy a property that is easier and cheaper to maintain, that meets health or mobility needs or gets you closer to friends and family.
How much deposit do you need for Co-Ownership mortgage NI?
Generally you will need at least 5% of the total amount you want to borrow on the mortgage. Danske Bank, however, is currently offering mortgages with no deposit.
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What are the costs involved in Co-Ownership?
For Co-Ownership, there’s an initial assessment fee of £100 to assess the applicants, which is paid to assess whether you meet the criteria. Upon a full application, there’s a £500 fee which is to assess the property. – this fee also includes most of the legal fees, but not all.
Additionally, there are solicitors’ fees, similar to those you would have for a regular mortgage. The specific fees may vary depending on the lender you are placed with, so it’s essential to consider potential fees associated with your chosen lender.
What if I have bad credit?
The application process includes a full credit assessment, using Experian to look at your credit history. Your score is not relevant, but Co-Ownership will look into any credit cards and loans, your limits and payment history.
Talk to us before making an application to Co-Ownership. We will explore your credit situation to see whether you will meet the scheme’s criteria before you start looking for a property.
How long does the Co-Ownership mortgage NI process take?
From gaining a Decision in Principle (DiP) to the full mortgage offer, it usually takes around three weeks, depending on how quickly property surveys are carried out and returned.
Is Co-Ownership a good idea in Northern Ireland?
It can be an excellent way to get on the property ladder at an affordable cost. If you were looking at buying a property worth £180,000 in the traditional way, you would need at least a 5% deposit, which is £9,000.
Using Co-Ownership you could buy half the property instead, meaning you only need half the deposit. £4,500 is a more achievable deposit for many people compared with £9,000. Plus, you can increase your share in the property over time, as your salary increases or other commitments reduce.
How does the application process work?
Start by talking to us to make sure you understand how everything works and what’s expected – and that you will meet all the criteria. Then, once you have found a suitable property, we will get you a mortgage Decision in Principle.
This and supporting documents are then assessed by Co-Ownership. Next we submit a full application, the property is surveyed and valued, and if all goes well you will receive an offer.
One of the big advantages of working with a broker like Mint is that we will identify any concerns or challenges at an early stage, giving you the opportunity to address the issue and avoid disappointment.
How can a Mortgage Broker help?
We’re here to help you at every step, and we’ll take the hard work and stress away. We’ll explain everything you need to know, submit all the forms on your behalf and give you the best possible chance of getting you the home you want.
Get in touch today to find out more.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The information contained within was correct at the time of publication but is subject to change (19/07/23).