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Co-ownership Mortgages - a stepping stone to owning your home
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In support of local government initiatives to boost the Northern Ireland housing market, we are offering a mortgage that allows you to buy a home through the Co-Ownership Housing® Scheme.
Northern Ireland Co-Ownership Housing Association is Northern Ireland's regional body for housing shared-ownership and is funded by the Department of Social Development.
What is Co-Ownership?
You buy a share of the property, and rent the remainder from Co-Ownership Housing®. The title to the property is in the name of Co-Ownership Housing®, which grants you a 99-year equity-sharing lease. You can buy more of the property over time, if you wish.
Who is eligible for Co-Ownership Housing® funding?
- Co-Ownership Housing® funding is available for first time buyers, or buyers returning to the market.
- If you currently own a property, you are not eligible to apply.
- Any residential property, up to a value of £175,000, can be considered for purchase under the scheme.
- Co-Ownership Housing® will provide from 10% to 50% funding of the purchase price.
- Further details are available directly from Co-Ownership Housing®.
Details of the First Trust Bank Co-Ownership Mortgage
- Interest rate: the Bank's standard variable rate. (Currently 4.75%. The overall cost for comparison is 5.2% APR)
- Arrangement fee: Our Standard arrangement fee is just £295
- Term: you can arrange a mortgage term from 5 to 25 years.
- Valuation: an independent valuation is required by the Bank, but the fee for this is refunded for first time buyers.
- Deposit:
If the mortgage is less than 80% of the value of the property, you do not have to pay a deposit. For example, if you wanted to buy a house costing £100,000 and Co-Ownership Housing® agreed to fund 50% of it:
| % of total cost |
|
Amount | |
|---|---|---|---|
| Rental portion | 50% | Co-Ownership Housing® | £50,000 |
| Mortgage | 50% | First Trust Bank | £50,000 |
| Deposit required | None | You | £0 |
If the mortgage is more than 80% of the value of the property, you will have to pay 5% deposit. For example, if you wanted to buy a house costing £100,000 and Co-Ownership Housing® agreed to fund 10% of it:
| % of total cost |
|
Amount | |
|---|---|---|---|
| Rental portion | 10% | Co-Ownership Housing® | £10,000 |
| Mortgage | 85% | First Trust Bank | £85,000 |
| Deposit required | 5% | You | £5,000 |
How do I apply?
- You must first apply direct to Co-Ownership Housing®. Their website www.co-ownership.org, gives a step-by-step guide to the process. You can also phone them on 028 9032 7276.
- Once Co-Ownership Housing® provides you with an offer, you can then contact us to apply for a mortgage to fund the remainder of the purchase price. Phone us on 0845 6005 925 when you have received your offer from Co-Ownership Housing®. (Calls from mobile phones may incur a charge.)
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Loans are granted subject to an appraisal of the applicant's financial standing. Applicants must be 18 years or over. Applicants must fall within First Trust Bank's standard lending criteria. Only primary residence within Northern Ireland will be considered. Details correct as at February 2012. Full terms and conditions and written quotations are available on request.