Co-Ownership

Expert Mortgage Advisers

 Free Initial Consultation

Access to competitive rates 

We will work with you to understand your situation and needs, then develop personalised advice to help you achieve your goals.

Get in touch

[]
1 Step 1
keyboard_arrow_leftPrevious
Nextkeyboard_arrow_right

Co-ownership Scheme – how does it work?

Getting on the property ladder can be challenging, but there are a few schemes that can help First Time Buyers along the way. The Co-ownership Scheme is a good option if you are unable to afford to buy the home you want outright.

What is the Co-ownership Scheme and how does it work?

The Co-ownership Scheme is a form of shared ownership scheme, where you buy a share in a property and pay rent on the remaining value.

Co-Ownership is a registered housing association in Northern Ireland. You apply to CO-Ownership for consideration and pay a £100 fee. Your financial situation is assessed and if you’re successful, you can then look for a home anywhere in Northern Ireland that meets Co-Ownership criteria. This can be either a new-build property or an existing home.

You will need to find out how much you can borrow on a mortgage to set your property budget, which will then help Co-Ownership decide the size of the share they will contribute.

Because Co-Ownership sets low rental values, most people find that as a shared owner the total monthly cost is lower than it would be to buy a home outright. You can also increase your share in the home over time, and ultimately own 100% of the property.

Who is eligible for co-ownership?

There are a few rules for co-ownership. You will need to meet the following eligibility criteria:

  • You’re over 18 and live in the UK
  • You don’t own any property or land anywhere
  • The property will be your only home
  • You have the right to live in Northern Ireland (immigration status)
  • You haven’t had a payday loan or home credit in the past 12 months
  • You don’t have bad credit such as CCJs or defaulted loans when you apply
  • You could not afford the property without using the Co-Ownership scheme
  • The property you want to buy has a value of £175,000 or less

How much deposit do you need for co-ownership?

The more money you can save towards a deposit for your home, the lower your mortgage payment will be. Some lenders may allow you to buy without a deposit, but you will usually have more choice of mortgage deals if you can put down at least 5% of the property value.

What other costs are involved?

Aside from your deposit and the £100 application fee, you will also need to pay a property fee of £475 when you upload your property details. This covers the cost of valuation for the property and most of the legal fees involved in purchasing your home.

There may be an arrangement fee on your mortgage, which we can help you budget for as part of the mortgage comparison process. You should also consider whether you will have any moving costs, such as for a removal company to help you move into the property.

As a First Time Buyer, you are not required to pay Stamp Duty. The annual rent you pay equates to £25 for every £1,000 of Co-Ownership’s share in your home.

Speak to An Expert

Expert Mortgage Advisers

We work with dozens of lenders

Access to competitive rates

We will work with you to understand your situation and needs, then develop personalised advice to help you achieve your goals.

What if I have bad credit?

You won’t be eligible for co-ownership if you have outstanding defaults, County Court Judgements, an Individual Voluntary Agreement or have taken a payday loan in the past 12 months.

If your bad credit rating is down to other situations, such as not being on the electoral roll or a missed payment, you may be accepted. We can help you explore the options based on your specific situation.

How long does the co-ownership process take?

The initial assessment of your case usually takes 3-4 working days. If you are approved, you receive an Approval in Principle that is valid for three months. You need to find and have a sale agreed on a property within this time frame, to gain a valuation and formal offer from Co-ownership.

Is co-ownership a good idea?

Co-ownership is worth exploring if your income won’t allow you to buy a property in full. It’s a great way to get on the property ladder, and you can gradually buy the remaining share in your home over time. You can choose from properties across Northern Ireland – the scheme isn’t limited to special shared ownership properties.

The main disadvantage of a shared ownership home is the possibility of negative equity, especially if you don’t put down a deposit. Negative equity is where property prices fall, meaning you owe more on the mortgage for your share of the property than it is worth. It can also be a little more complex to sell a co-owned property.

How can a Mortgage Broker help?

We have helped hundreds of clients buy affordable homes with the Co-Ownership Scheme. We’re here to compare the options for you – including other home-buying schemes – and find you a suitable mortgage deal to help you achieve your property dreams. Contact our team today to find out more.

Speak to An Expert

Expert Mortgage Advisers

We work with dozens of lenders

Access to competitive rates

We will work with you to understand your situation and needs, then develop personalised advice to help you achieve your goals.

Why Mint Mortgages & Protection

Co-Ownership
Access to 1000s of mortgage products
Co-Ownership
Save money, time and hassle
Co-Ownership
Expert knowledge at getting you the best deals
Co-Ownership
Advice to protect yourself and your family