Nationwide Building Society has unveiled that potential first-time buyers usually save for approximately nine years in order to afford a house deposit and start climbing the property ladder. Co-Ownership have assured these buyers that they may be able to get on the property ladder in a shorter time.
Data uncovered that a 20% deposit in Northern Ireland would equate to approximately £24,000, normally taking just under 9 years to save.
Co-Ownership is Northern Ireland’s leading provider of shared ownership and they are reassuring first-time buyers that support is on hand to overcome difficulties and worries when saving for a deposit.
Mark Graham, Co-Ownership’s Chief Executive highlights: “The data demonstrates the impact low wages and interest rates are having on potential first-time buyers who are struggling to raise the money to afford a deposit.”
“We see the wider economic challenges that prospective home-owners face; low wages, temporary contracts and the higher levels of debt that often result which in turn add to the amount of time required to save for a deposit,” Mr Graham added.
Co-Ownership is dedicated to helping buyers into home-ownership and identify that a major barrier to achieving this is saving for a deposit. The housing association has advised potential first-time buyers who are having trouble raising deposit funds to consider the shared ownership scheme.
“With shared ownership you don’t have to wait up to nine years to save for a deposit. In many cases you don’t need a deposit at all, as a number of mortgage lenders accept our share in the property as the deposit,” Mr Graham explained.
Co-Ownership is also trialling ‘Rent to Own’, another way into home-ownership for first-time buyers in Northern Ireland. This method allows the individual to enter a fixed-term rental agreement for up to 3-years. At the end of the 3-year period, 25-percent of the occupant’s rental payments are returned to act as the deposit in purchasing the dwelling.
“Through Rent to Own you are able to live in the home you want now, without waiting years to save for a deposit. At the same time as living in the property you want to be in, you have the option to own it later.
“Rent to Own is one way Co-Ownership is working to support people in Northern Ireland into home-ownership in response to precisely what this latest data has revealed,” Mr Graham concluded.
Co-Ownership is holding an open evening on Thursday, February 1 from 4.30 pm to 7.30 pm at their offices in Murray Street, Belfast. Potential home-owners can learn about support that is available and meet with potential mortgage lenders.
Visit co-ownership.org, call 02890327276 or visit the Co-Ownership Housing office on Murray Street, Belfast