The process of finding, purchasing and eventually owning your own home is a huge life goal for many people across NI. As a bank, we’re privileged to be a part of that journey, helping people achieve their housing dreams — but it’s important to note that the homebuying journey has changed over the years, and that sometimes, further support is needed.
Danske Bank has been a part of people’s financial journeys since 1824. For 200 years, we have been providing solutions that help our customers, colleagues and society to thrive — whether that’s owning their home, providing banking for their family, funding local businesses and entrepreneurs, or supporting local communities.
This ethos has been further affirmed by our support of Co-Ownership — NI’s only shared ownership provider. Through our partnership, customers have been able to overcome one of the biggest challenges faced by potential homeowners — the mortgage deposit.
With Co-Ownership, customers buy a share of the home they can afford with our help — between 50-90% — whilst Co-Ownership funds the remainder. We see Co-Ownership’s share as our guarantee or certainty, removing the need for a deposit.
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Typically, our customers could need as little as 5% deposit, but the market norm for many lenders is 10%, so a ‘zero-deposit’ product has an important role in the market, especially as more people across the region come to rely on it.
We are acutely aware of the pressures our customers are under to raise a deposit, and recognise that buying a home isn’t as affordable as it once was. Many people are stuck in what’s known as the “rental trap” and without a cash injection from “the bank of mum and dad”, it can be hard to leave the private rental sector.
It’s our role as lenders to facilitate the homebuying journey for as many people as possible. And through Co-Ownership, we have been able to bring a solution that has proven its effectiveness for over two decades. Over the last year we proudly supported 37 per cent of all Co-Ownership’s new customers — people who otherwise may never have experienced the benefits of home ownership.
Alongside programmes like Co-Ownership, we continually review our products, pricing and affordability. Most recently, we made improvements to the affordability calculations for our mortgage customers, which include increased borrowing for EPC A-C rated properties and improved affordability for single applicants.
We know the benefits of owning your own home are widely accepted as greater financial security, improved mental health and better overall wellbeing, and recent Co-Ownership research confirms this, with 8 in 10 customers reporting improved mental wellbeing as a result of buying their own home.
The impact of the cost-of-living crisis continues to affect affordability and mortgage transactions as a result. Whilst activity continues to pick up, we will keep the benefits of home ownership front of mind to ensure we can bring real value to people across Northern Ireland.
Co-Ownership regularly hosts information events at Danske Bank branches throughout NI. Visit co-ownership.org for more details.