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Shared Ownership Mortgages

A guide to shared ownership mortgages

How shared ownership works, what it costs, and how to apply for a mortgage on a shared ownership property.

2 min readWritten by Ali Jabbar

Shared ownership offers a practical route onto the property ladder if buying a home outright is beyond your reach. This guide explains how the scheme works, what costs to expect, and how to secure the right mortgage for your share.

How does shared ownership work?

With shared ownership you buy a share of a new-build or resale property from a housing association, typically between 25% and 75% of its full market value. You take out a mortgage on the share you purchase and pay a subsidised rent on the portion you do not own.

The rent is usually set at around 2.75% of the housing association’s share per year, which is typically lower than market rent. Combined with your mortgage repayment, this can make monthly housing costs more affordable than buying or renting privately.

Properties are usually leasehold, and you will need to budget for service charges and any ground rent on top of your mortgage and rent payments.

What deposit do you need?

You will need a deposit based on the share you are buying, not the full property price. For example, if a home is worth £300,000 and you are buying a 50% share, your mortgage is based on £150,000. A 5% deposit on that share would be £7,500.

Some lenders accept deposits as low as 5% on shared ownership purchases, similar to 95% LTV mortgages, though putting down more will improve the interest rates available to you. Your adviser can help you understand exactly how much you need to save.

Costs beyond the deposit

As well as your deposit you will need to cover solicitor fees, a valuation, and potentially a mortgage arrangement fee. Stamp duty land tax may apply depending on the value of your share and whether you elect to pay in stages or on the full market value upfront.

You should also factor in moving costs, furniture, and an emergency fund. Your adviser will give you a clear breakdown of the total amount you need before you commit.

How to apply for a shared ownership mortgage

Start by checking your eligibility through your local Help to Buy agent, who will assess your income and circumstances. Once approved, you can reserve a property and begin your mortgage application.

Not all lenders offer shared ownership mortgages, so working with a broker gives you access to a wider range of products. Your adviser will handle the application, liaise with the housing association, and keep things moving through to completion.

Written and reviewed by

Ali Jabbar

Role
Managing Director
Specialism
Complex Income & First-Time Buyers
Regulator
FCA register
“Most shared ownership cases come down to one thing: the right lender for your circumstances. We’ll find them — and walk you through every step.”
— Ali Jabbar
Get a quoteor call 020 3829 9515

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Ready when you are

That's the shared ownership guide. The next step is your situation, your numbers, your circumstances — and that's a conversation. Free, no obligation, take it from there.

Get a quoteor call 020 3829 9515