Despite an improving mortgage market following the Bank of England’s recent interest rate cut, many buyers still face significant hurdles when trying to secure a home. The partnership is welcome news to buyers across Northern Ireland, as rising house prices continue to challenge affordability, making it harder for people to save for a deposit.
Richard Martin, Business Development Manager at AIB NI, explains the partnership is an important one to help provide alternative solutions for buyers.
He says “We’re proud to partner with Co-Ownership, giving potential buyers more options and support to secure their first home. We understand how challenging it can be in the current climate and through the Co-Ownership model, we can help customers achieve the life they are after.”
Successful Co-Ownership applicants can choose a home anywhere in Northern Ireland, up to the value of £210,000. They then buy the share of a home they can afford, anything from 50 to 90 per cent, through partner lenders. Co-Ownership covers the remaining share, with the buyer paying the mortgage each month, along with a small monthly rent.
Glynis Hobson, Director of Customer Services at Co-Ownership, explains how the organisation is committed to making home ownership a reality for people in Northern Ireland.
She says, “We believe that everyone that wants to become a homeowner should have the chance to, but for many people saving for a deposit while paying rent is simply too difficult. Too often people rule themselves out thinking that it is too much of a stretch.
“We’re delighted to welcome AIB on board as our third no-deposit lender alongside Danske Bank and Progressive Building Society. Their support means we can work together to help more people take that crucial first step onto the property ladder, and we look forward to working together to support local customers becoming homeowners.”
Shared ownership has been working effectively in Northern Ireland since 1978. In March, the Department for Communities announced £153m funding for the model, demonstrating its ability to address the some of the current challenges in the housing system. Minister Lyons said the funding will enable 4,000 to become homeowners over the next four years.
Typically, 90 per cent of people who choose shared ownership will go on to own their home without Co-Ownership’s help.
Glynis concludes, “As a not-for-profit organisation, when people do buy us out, the money goes to helping other people start their home ownership journey. We’ve helped more than 34,000 into home ownership since 1978, last year alone helping 771, of which almost half were renters. We would encourage anyone who dreams of owning a home to not rule themselves out we’ll do our best to help and signpost how home ownership can happen.”
For more information or to find out about upcoming events, visit www.co-ownership.org.