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 2.5% per annum (subject to annual review).

Buy additional shares later

With FairShare you can take your first steps into home ownership, by purchasing a share of a property that you can afford. Going forward you can budget for buying additional shares in your home, as and when you can afford to. The process of buying further shares in your home is known as staircasing. If you’re thinking about buying further shares in your FairShare property, please get in touch and we will advise you on how to proceed.

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 £104.00 per month

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: 2.5% per annum (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 £83.00 per month

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: 2.5% per annum (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. FairShare rent is set at 2.5% per annum (subject to annual review).

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