Guidance

Affordable home ownership schemes: Northern Ireland (updated April 2020)

Updated 16 September 2020

This guidance was withdrawn on 8 March 2023

This publication is withdrawn as it is no longer current.

Please access Information and guidance on civilian housing

This handout has information on:

• co-ownership and fair share

Many personnel may have discounted the idea of buying a property because they believe that they can’t afford it. Over recent years it has become increasingly difficult to obtain an affordable mortgage unless you have a significant deposit. The Mortgage Market Review has also impacted on mortgage applications as providers are now required to look more closely at how affordable your initial mortgage repayments will be, taking into account not just your income but also your outgoings such as general cost of living and existing loans. Lenders will also look at the future affordability of your mortgage payments to ascertain whether a rise in interest rates would impact on your ability to meet your repayments.

Whilst the tightening of mortgage regulations may appear to make home ownership even harder to achieve, Affordable Housing Schemes are designed to bridge the gap between the asking price for a property and the available mortgage, increasing the range of people who are able to get on, or move up, the property ladder.

This handout will focus on the Affordable Housing Schemes available in Northern Ireland. Similar schemes are available throughout the UK and information on those specific to England, Scotland and Wales are available on request from JSHAO. Although Service personnel have been designated as ‘Priority Status’ in other areas of the UK, this does not apply in Northern Ireland.

Co-ownership Northern Ireland

Shared ownership schemes allow someone to own a portion of a property and to rent the remainder from a housing association. For years, Co-ownership Housing has been the best-known scheme for people who want to buy a home but who cannot afford to purchase 100% of the property they’re interested in.

Buying a home with co-ownership

You can apply to buy a home through co-ownership if:

• you are over 18
• you could not afford the property without using the co-ownership scheme
• you don’t own any other property and you don’t have any unpaid debt relating to an old mortgage or secured loan
• the property you wish to buy is not a Housing Executive or housing association property
• the property you want to buy is not valued at more than £165,000.

There are 9 starter shares available for homebuyers, with a minimum of 50% and a maximum of 90%, in steps of 5%. You can buy as much as you can afford initially, up to 90% of the property value. You will have to pay a monthly mortgage on the part of the property you own. You must pay rent to NICHA for the share of the property they own. You are responsible for all repairs in the property.

Once you’ve found a property that you would like to buy, you should contact Co-ownership to start the application process. There are several lenders that will provide mortgage for co-ownership purchases, including Ulster Bank.

As part of the stair-casing process with Co-ownership, a valuation will be carried out on the property and the report from this process will explain how much your new shares will cost. Download the ‘Your Next Move’ brochure to find out more about the stair-casing using this scheme. Co-ownership allows you to stair-case up in blocks of 5%.

If you increase your share in the property and use a mortgage to finance this purchase your mortgage payments will go up accordingly. However, your rent payments will reduce as you increase your shares in the property.

Leaflets are available from the Co-Ownership website or offices at:

Murray House Murray Street Belfast BT1 6DN

and from any Housing Executive office.

Contact Co-Ownership on: 02890 327276.

Further information can be found at the co-ownership website.

Fair share Northern Ireland

Fairshare is a Shared Ownership Scheme in Northern Ireland. This scheme allows people to partner with a housing association to buy a property. Housing associations in Northern Ireland offer affordable, high-quality new-build properties for sale through the FairShare shared ownership scheme. FairShare homebuyers can buy a starter share of between 50% and 90% and pay rent on the rest.

Currently, three of Northern Ireland’s largest housing associations are providing help for homebuyers through the FairShare shared ownership scheme - Apex, Choice and Clanmil.

Buying a home with fair share

You can apply to buy a home through Fair Share if:

• you do not own any property or shares in property in the UK or abroad
• you cannot afford to buy a 100% share of a home suited to your needs that is within reasonable distance of your work
• you can’t afford to rent a place within reasonable travelling distance of your work
• you are eligible to get a mortgage for at least 50% of the purchase price
• your salary meets FairShare’s affordability guidelines for potential purchasers.

There are a number of properties listed on the FairShare website which can have been pre-approved for the scheme. If you’re not interested in these but have found another property that you’d like to buy with the help of this scheme, you can contact Fair Share to see if it is eligible under the scheme’s rules.

Getting a mortgage

You will need to apply for a mortgage for the portion of the property that you intend to purchase.

If you are buying through the FairShare scheme, you can apply for a mortgage with Lloyds, including Halifax, Nationwide or Santander.

Several lenders, including First Trust, Ulster Bank and Bank of Ireland, offer mortgages to eligible customers who wish to purchase a property with the assistance of Co-ownership.

Fees

You must pay a £400 fee when you apply to buy a property through Co-ownership. This fee covers the application process, valuation fees and legal services. If your application does not proceed, you may get up to £250 of this refunded.

If you are buying a home, you will also need to pay fees for things like valuation, mortgage, stamp duty and legal costs to your solicitor.

Paying rent

You will have to pay rent on the portion of the property that you do not own. When you apply, you will be given an idea of how much rent you will pay over the first few years you are in the property. If you fall behind on your rent or on your mortgage, you could lose your home so it’s important to get advice urgently if your finances are stretched.

Increasing your shares in the property

As your financial circumstances change, you may want to increase your shares in the property. This is called stair-casing.

If you bought with FairShare the amount that you will pay for additional shares in the property will depend on the value of your property at the time you apply for extra shares. If the property’s value has gone up the price of shares will be based on this new valuation. If the property’s value has decreased, the price will be based on the value of the property at the time you first purchased it.

Further information on Fairshare can be found at the Fairshare website.

Contact the Joint Service Housing Advice Office on the Civilian number: 01252 787574 and Military number: 94222 7574. You can also email the office on rc-pers-jshao-0mailbox@mod.gov.uk.