For many first-time buyers in Northern Ireland, getting on the property ladder can feel out of reach. Co-Ownership Northern Ireland is a government-backed shared ownership scheme designed to help people who cannot afford to buy a home outright. If you are exploring your options for buying your first home, understanding how co-ownership works could open doors you did not know were available.
What Is Co-Ownership?
Co-Ownership is a shared ownership scheme run by Co-Ownership Housing, a registered housing association. Instead of purchasing 100% of a property, you buy a share (typically between 50% and 90%) and pay rent on the remaining share to Co-Ownership Housing.
This means:
- Your mortgage is smaller, because you are only borrowing for your share
- Your deposit is calculated on your share, not the full property price
- Monthly costs combine your mortgage payment and rent on the remaining share
Who Is Eligible?
To qualify for the Co-Ownership scheme in Northern Ireland, you generally need to meet the following criteria:
- You must be a first-time buyer, or someone who does not currently own a property
- Your total household income must be below the scheme's income threshold
- You must be unable to afford to buy a suitable home without assistance
- The property must be your main residence
- You must be able to secure a mortgage for your share from an approved lender
It is worth noting that eligibility criteria can change. Check directly with Co-Ownership Housing for the most current requirements.
How Much Does It Cost?
The costs involved include:
- Deposit: Typically 5% of your share of the property (not the full value). For example, if the property costs £150,000 and you buy a 60% share (£90,000), your 5% deposit would be £4,500.
- Mortgage payments: On your share of the property
- Rent: On Co-Ownership's share, currently charged at 2.75% of their share per year (subject to review)
- Standard buying costs: Solicitor fees, valuation, surveys
Staircasing: Buying More Over Time
One of the key benefits of Co-Ownership is the ability to "staircase" by purchasing additional shares in your property over time. As your circumstances improve or your property increases in value, you can gradually increase your ownership until you own the property outright.
Each staircasing transaction requires a new valuation and potentially a remortgage to fund the additional share.
What Properties Can You Buy?
The scheme covers:
- New-build properties from approved developers
- Existing (resale) properties on the open market
- Properties that meet certain size and condition standards
There is a maximum property value that applies to the scheme, which is reviewed periodically.
Advantages and Considerations
Advantages:
- Makes homeownership accessible on a lower income
- Smaller deposit requirement
- Ability to increase your share over time
- Access to the open property market, not limited to specific developments
Considerations:
- You pay rent on the share you do not own, in addition to your mortgage
- Staircasing involves additional valuation and legal costs
- Not all mortgage lenders participate in the scheme, so a smaller panel of options
- You may need permission from Co-Ownership for significant alterations to the property
How to Apply
The application process typically involves:
- Register with Co-Ownership Housing and complete their assessment
- Get an Agreement in Principle from an approved mortgage lender
- Find a property that meets the scheme criteria
- Apply formally through Co-Ownership
- Complete the purchase with your solicitor
Getting Mortgage Advice for Co-Ownership
Not all lenders offer mortgages on Co-Ownership properties, so it is important to work with a broker who understands the scheme and knows which lenders participate. At CGR Financial, we advise first-time buyers across Northern Ireland on Co-Ownership mortgages and can help you understand whether the scheme is right for your circumstances.
Contact us to discuss your options.
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.