How does FairShare work?

FairShare is a shared ownership scheme for Northern Ireland. FairShare allows homebuyers who cannot afford to buy a property outright, to buy a share of a new-build property directly from a housing association and pay rent on the rest.

Start with a share that you can afford

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. For example; if a couple buys a 50% share of a property from a housing association with a mortgage, they pay an affordable rent on the 50% share still owned by the housing association. FairShare rent is set at 1% for the first two years.

Buy additional shares later

Housing associations help homebuyers manage their first steps into home ownership by keeping the cost of starter shares affordable, and rents as low as possible. Managing those important first steps allows homebuyers to plan for the purchase of further shares in their home, as and when they can afford to. This is called staircasing.

Example: Buy 50% share of new-build property costing £100,000

Buy 50% share. Contact Halifax, Nationwide or Santander for deposit¹ and mortgage² costs. Typical cost – £225 per month.

Rent³ 50% share for £42.00 per month for first 2 years

Example FairShare illustration above is based on: buying 50% share and renting 50% share of a property costing £100,000; ¹ putting down a mortgage deposit of 10% of the value of the share being purchased; ² taking out a first time buyer mortgage over a 25-year term with the rate of interest fixed for first 5 years at 3.49%; ³ FairShare rent charged: 1% per annum in years 1&2; 1.75% per annum in years 3&4; and 2.5% per annum in year 5 onward (subject to annual review). Terms and conditions will apply.

Example: Buy 60% share of new-build property costing £100,000

Buy 60% share. Contact Halifax, Nationwide or Santander for deposit¹ and mortgage² costs. Typical cost – £270 per month.

Rent³ 40% share for £33.00 per month for first 2 years

Example FairShare illustration above is based on: buying 60% share and renting 40% share of a property costing £100,000; ¹ putting down a mortgage deposit of 10% of the value of the share being purchased; ² taking out a first time buyer mortgage over a 25-year term with the rate of interest fixed for first 5 years at 3.49%; ³ FairShare rent charged: 1% per annum in years 1&2; 1.75% per annum in years 3&4; and 2.5% per annum in year 5 onward (subject to annual review). Terms and conditions will apply.

Who is eligible?

It is important that you are aware of the full list of eligibility requirements as you will be required to confirm these on your online application form. Click FairShare eligibility requirements to view the full list of eligibility requirements. The following are some of the key requirements for a successful application:

• you don’t currently own your own home, or a share of a home or property in the UK or abroad
• you CANNOT afford to buy a 100% share of a home suited to your needs or rent appropriate accommodation within a reasonable distance of your place of work; and
• you CAN afford to buy a minimum 50% share in a new-build property and pay rent on the remaining share

The FairShare Partners?

For homebuyers who cannot afford to buy a property outright, FairShare offers a partnership approach to getting onto the property ladder. Through the scheme, aspiring homebuyers can partner with a housing association to purchase a home together in a way that makes it affordable. Currently, three of Northern Ireland’s largest housing associations are providing help for homebuyers through the FairShare shared ownership scheme – Apex, Choice and Clanmil.

Mortgages for FairShare?

There are currently three major UK lenders providing mortgages for the FairShare shared ownership scheme. The requirement for a mortgage deposit will depend on the individual lender’s criteria at the time of your mortgage application. Please check the lender’s websites for up to date information – Lloyds, Nationwide and Santander.

What are the start-up costs?

Homebuyers will have to meet the initial costs of house purchase including valuation, legal fees, stamp duty (if appropriate) and the cost of moving.

What are the on-going costs?

In addition to your monthly mortgage payments, you will be required to pay rent towards the share bought by your FairShare partner. Rent charges are set well below market value rents:

• 1% per annum in years 1 & 2;
• 1.75% per annum in years 3 & 4; and
• 2.5% per annum from year 5 onwards (subject to annual review).

Use the FairShare calculator* to see how affordable your combined monthly mortgage and rent could be.

*The FairShare calculator assumes a fixed rate of interest for 5 years.