Co-ownership NI is a government scheme which will allow a successful applicant to buy a share of their home (between 50% and 90% of the properties value) and pay rent on the remainder.
You will still need to take out a mortgage to pay for the remaining share of the home’s purchase price. Co-Ownership is a Shared Ownership scheme exclusive to Northern Ireland.
If you hope to own your own home but you can’t quite afford a mortgage, or you are struggling to save a sizeable deposit Co-Ownership may help you onto the property ladder.
Let’s take a look at some of the advantages and disadvantages of co-ownership to allow you to make an informed decision.
Advantages of Co-Ownership
Co-Ownership is an affordable way to get onto the property ladder.
No deposit required this is probably what attracts the majority of first time buyers in Northern Ireland to co-ownership.
You can continue to increase your shareholding in the property until you own it completely. This is known as staircaising.
Even with rent and mortgage combined it s still generally more affordable than a full mortgage.
Disadvantages of Co-Ownership
Not all lenders cater for Co-Ownership so there will be a limited number of products available and you may not be able to secure one of the better rates on the market.
If the properties value increases you will have to pay more to buy the remaining share.
Currently 02/11/2016 there is a property value cap of £150,000, so if the property you wish to purchase exceeds this it will not be eligible for the co-ownership scheme.
If you decide to make any changes to the property using a further advance you will have to seek approval from the co-ownership scheme.
If your circumstances change and you decide to rent your property out you will need to seek approval first.
The application process for a co-ownership mortgage is a little more complicated than a standard residential mortgage, this is because you must apply to both the co-ownership scheme directly and you must also arrange the finance for the remaining share of the property.
Our Mortgage Brokers deal with co-ownership applications on a regular basis we do not charge a fee for our services and would happy to guide you through the process from start to finish. Contact a mortgage broker today and get your application under way.