Co-Own Applicant Criteria
Criteria as at 1st April 2023
Before you apply it’s important that you check out our criteria and make sure that you meet it. Once you apply, the first stage of your application fee, £100, will be charged and is non-refundable.
|Age||You must be over 18 to apply.|
|Residency status||You must live in the UK. You may be asked to provide evidence that you have adequate right to reside in Northern Ireland. You have to live in the property as your only residence.|
|Income multipliers||For us to work out how much you can afford we multiply your income by 4. If you’re applying with another person we multiply your joint income by 4. These multiples are based on total income, before tax. We take a final decision after looking at all the evidence and assessing whether you can afford the purchase in the long term, based on your disposable income.|
We cannot support applications from people who can afford to buy the property without our help.
|Homeowner||You can’t apply for Co-Own if you currently own property which includes owning property or land, including commercial, or being named on any property, in Northern Ireland or elsewhere.|
We may consider previous co-owners if you meet our qualifying criteria. If you have been a co-owner in the past we may take into account how your previous property was managed and maintained, whether you kept to (i) the terms of the equity sharing lease (including the payment of rent) and (ii) any other arrangements you had with Co-Ownership.
|Who should apply||Joint applicants – if you are married, civil partners, or couples living together or intending to live together in your new home, then you must apply together.|
Single applicant – if you are applying on your own, we would expect that you don’t have joint accounts or joint finances with anyone else.
|Occupiers||Please let us know the names of all adults and children who will be living in your new home with you, the applicant(s).|
|Deposits||If we think you may be able to save for a deposit, you may not be suitable for Co-Own.|
|Outstanding property debit||You must not have any debt to any third party which was secured on a previous home.|
|Outgoings||You must give full details of any monthly outgoings you have. These could include loans, credit/store cards, mail order, childcare, maintenance, and other outgoings.|
|Previous relationships||You must have concluded any settlement arrangements from all previous relationships.|
|Credit assessment||When you apply to Co-Own we will perform a full credit assessment to determine your affordability. Part of this assessment is to look at your credit file, not your score, using the Experian credit reference agency. We will look at your credit history which will include things like, if you have any credit cards or loans, the amounts of these, your repayments of these, and if you have any missed or late payments.|
Your credit history shows how you have managed your credit up to now and is taken into account as part of our decision. We recommend you get a copy of your credit report before applying and check it. If you have a query about an entry on your credit report this must be shown as resolved before you apply. Things that will affect your credit assessment include, but are not limited to:
|Debt management||Before making an application to Co-Own, any of the following arrangements must have been settled (and be shown as settled on your credit file) for the stated period:|
The following arrangements also need to have been settled and will affect your credit assessment:
If you have had a minor default/debt management plan within the last 12 months we will take this into account in your credit assessment. If however the default(s)/debt management plan involved a higher balance or there were multiple defaults/debt management plans you must wait for 12 months after the last of these has been noted as settled on your credit file before making an application.
If you have had a missed or late payment within the last 12 months we will take this into account in your credit assessment. If however you have regular missed and/or late payments you must have 12 months clear payment history on the account.
Just remember that you can have no adverse credit at the time of making a Co-Own application.
|Managing your bank accounts||We will review 3 months bank statements as part of the application. If these show any unauthorised overdrafts, returned Direct Debits, or bank charges for unauthorised usage, you will not be eligible for Co-Own.|
If you are heavily reliant on credit or an overdraft to pay your household costs and other outgoings, you may not be eligible for Co-Own.
|Employment||The following types of employment are acceptable and you must be with your current employer for at least the following period before you apply as indicated below. You must not be under notice of termination of employment or redundancy.|
If your position has changed from e.g. fixed term or temporary to permanent we may take this into account.
|Other income||If your monthly income is heavily reliant on benefits or other unearned income, we recommend that before you apply to Co-Own you speak with a mortgage adviser / lender as your type of income may impact on your ability to get a mortgage.|
We will consider the following other income:
|Savings||Any savings over £12,000 must be put towards a deposit.|
|Lifestyle, spending decisions||All applicants must prove they have been able to afford their current lifestyle. They must also prove they will be able to afford the commitment of owning their home through Co-Own from their current disposable income.|
|Application information||All application information must be correct and true. Any fraudulent, false or misleading information, statements or omissions in respect of an application may be sufficient grounds for the application being cancelled. For further information see the Co-Ownership Terms & Conditions (Declarations) on our website.|
|Previous applicants||Previously declined applicants can’t apply until 3 months have passed from the date they were told of an unsuccessful application. However, any fraudulent, false or misleading information or omissions in respect of an application or a vexatious application will mean that an applicant will not be able to make another application for any of Co-Ownership’s products or for Rent to Own for 12 months from the date of cancellation of the application.|
Please remember that you will be charged for a new assessment when you apply again, so be sure to check that you meet all the criteria before submitting a new application.
|Change in circumstances||If your circumstances change at any stage during an application you must let us know about this. We will review your circumstances. This may result in your application being revised or withdrawn.|