What is Co-Ownership ?
Co-Ownership is a Northern Ireland based scheme backed by the government and is designed to help First-time buyers to get onto the property ladder, by agreeing to buy a share of the property. This means that a first-time buyer can secure a loan without first saving a deposit.
The applicant then repays the mortgage debt along with rent on the share that was paid for by the co-ownership fund.
Co-Ownership Lending Criteria !
In order to be eligible for a co-ownership loan you must meet certain criteria, you have to be able to prove that you have no other way to get onto the property ladder and you should also be able to show evidence that you will be able to keep up with the monthly repayments.
Pro’s and Con’s of Co-Ownership !
- You do not require a deposit (probably the biggest stumbling block for most first-time buyers is saving a sizeable deposit)
- You can gradually increase your shareholding in the property as and when you can afford to until you own the property outright. This is known as staircasing.
- The monthly repayments are generally cheaper than they would be on a standard mortgage product in spite of the combined rent and repayments making it a more affordable option for those on a budget.
Disadvantages of Co-Ownership !
- Only a small percentage of lenders deal with co-ownership applications so you may not have access to the best deals on the market.
- If they property rises in value you will have to pay extra to buy the remaining share when the time comes.
- 18/10/2017 The purchase price of the property is currently limited to £165,000 under the co-ownership scheme.
How can you apply for a Co-Ownership Mortgage ?
In order to apply for a co-ownership mortgage you must apply to both the co-ownership scheme and the Bank.
If you would like to apply for a co-ownership mortgage simply contact us today and we will help to guide you through the process