Shared Ownership Mortgages

A practical way for first-time buyers to get on the property ladder without buying outright.

What is Shared Ownership?

Shared ownership offers a practical way for first-time buyers and those looking to move to get on the property ladder without the need to buy a home outright. You can purchase a share of the property, usually between 25% and 75%, and pay rent on the remaining portion.

Over time, you have the option to buy more shares in the property, known as staircasing, allowing you to increase your ownership gradually. This flexible option makes it easier to afford a home while giving you room to expand your ownership as your financial situation improves.

Eligibility Requirements

Age Requirement

You must be at least 18 years old to apply.

Valid ID required

Income Threshold

Household income must be below £80k (£90k in London).

Proof of income

Group Status

Ideal for FTB or those who can't afford a home outright.

Specific criteria

Property Status

Existing homes must be sold before completion.

Single property only

Example Share Options

Figures are illustrative based on a £200,000 property.

Share	Share Value	5% Deposit	Est. Mortgage	Est. Rent
25%	£50,000	£2,500	~£250	~£280
50%	£100,000	£5,000	~£500	~£190
75%	£150,000	£7,500	~£750	~£95

* Figures are illustrative only. Actual costs depend on interest rates and housing policies.

How It Works

With shared ownership, the share you purchase can range from 25% to 75% of the property's total value. The advantage of this scheme is that the deposit is based on the percentage of the property you're buying.

You can also share the mortgage with another person, such as a partner or friend. Joint mortgages enable multiple people to contribute to the purchase, making it easier to pool resources.

Additional Costs to Consider

Service Charges

Monthly fees covering communal areas and insurance.

Ground Rent

Annual fee paid to the freeholder if leasehold.

Maintenance

You are responsible for interior upkeep.

Lease Extension

Planning ahead to protect your investment value.

Benefits of Shared Ownership

Lower deposit required (5% of your share)

Smaller mortgage needed than buying outright

Staircase to full ownership over time

Access to homes you might not otherwise afford

Can sell your share at any time

Available for new builds and resales

Shared Ownership for Specific Groups

Older Buyers (55+)

OPSO allows buyers to purchase up to 75% without paying rent on the rest.

Armed Forces Personnel

Military personnel often receive priority access to schemes.

People with Disabilities

HOLD schemes offer adapted properties for long-term disabilities.

Previous Homeowners

For those who can no longer afford the open market.

Shared Ownership Mortgage FAQs

Shared Ownership allows you to buy a share of a property (usually 25% to 75%) and pay a subsidized rent on the remaining share to a housing association. It's a great way to get on the ladder with a smaller mortgage and deposit.

One of the biggest benefits is that you only need a deposit based on the *share* you are buying, not the full market value. For example, if you're buying a 25% share of a £200,000 home (£50,000), a 5% deposit would only be £2,500.

Typically, it's for first-time buyers, people who used to own a home but can't afford one now, or existing shared owners looking to move. Your household income must be less than £80,000 (£90,000 in London).

Staircasing is the process of buying more shares in your home as your financial situation improves. Eventually, most people aim to own 100% of the property, at which point you stop paying rent.

Yes, you can sell your share at any time. The housing association usually has a set period to find a buyer for your share first; if they can't, you can often sell it on the open market.

Have more questions about shared ownership? Our expert advisers are here to help.

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.