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Want to buy a home through the shared ownership scheme? Then you’ll need to find out about shared ownership mortgages. We explain what they are, how to get one and how to find the best shared ownership mortgage deal for you.
A shared ownership mortgage lets you borrow to buy your share of a shared ownership property, while you pay rent on the remaining share. You may only need a 5% deposit on the share you’re buying.
KEY INFORMATION
Shared ownership mortgages are the type of mortgage you’ll need to take out if you buy a property through Shared ownership, a scheme designed to help you buy a home if you can’t afford to buy on the open market.
The shared ownership scheme makes the cost of home ownership more affordable because you can buy as little as a 10% share in a property and your deposit can be 5% of that share, rather than of the whole property. You’ll rent the remaining share from your local housing association or developer that owns it. The scheme is also referred to as Part Buy, Part Rent or Share to Buy.
When it comes to shared ownership mortgages, while many mainstream lenders do offer these types of mortgages, not all do so it’s a good idea to get expert mortgage advice.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage. Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
Before you can apply for shared ownership mortgages, you first need to apply for the shared ownership scheme and be approved. There are criteria you’ll need to meet including:
You can read more about whether you’re eligible to apply for a shared ownership property with our guide Shared ownership: What is it? Is it worth it?
Just like when you take out a traditional mortgage, with shared ownership mortgages you can choose to take out a:
For more information, read our guide on Understanding mortgage types and what one you need.
So how do shared ownership mortgages work in practice? Here’s an illustration. Say you want to buy a 25% stake in a shared ownership home worth £400,000…
| Value of the property: | £400,000 |
| Share you want to buy: | 25% |
| Value of your share | £100,000 |
| Deposit needed (5% of your share) | £5,000 |
| Mortgage needed | £95,000 |
| Share owned by housing association | 75% |
| Estimated mortgage per month | £572* |
| Estimated monthly rent | £687.50** |
| Approx monthly service charge*** | £100 |
| Estimated monthly costs: | £1359.50 |
How much you can borrow with a shared ownership mortgage will depend on your income, outgoings, deposit and the share of the property you’re buying. You’ll also need to show you can afford the rent on the remaining share and other ongoing costs.
Because shared ownership affordability works differently from a standard mortgage, a conventional mortgage calculator may not give you an accurate picture of how much you can afford. A mortgage broker can assess your circumstances and explain your shared ownership mortgage options.
When it comes to finding shared ownership mortgages, a broker can prove extremely useful. They know which mortgage lenders will suit your requirements and find the best shared ownership mortgage for you. For example, some lenders may have specific deals available for shared ownership whereas others may offer their normal range of deals on shared ownership properties.
Our Mortgage Expert Sarah Tucker says,
“Shared ownership mortgages can vary quite significantly between lenders. Some lenders offer specific products designed for shared ownership, while others simply offer their normal range of deals on shared ownership purchases.
So it’s important that borrowers compare the options carefully. An expert mortgage broker will do this for you and find the best mortgage for you.”
At HomeOwners Alliance we have teamed up with Mortgage Advice Bureau – their expert advisers offer fee-free advice on shared ownership mortgages.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage. Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
With shared ownership mortgages, the loan to value (LTV) works differently than with standard mortgages. The LTV isn’t calculated on the whole value of the property, just the portion you are buying.
For example, if you were buying a 50% share of a flat worth £200,000 you would need to stump up £100,000 from a combination of mortgage and deposit. So if you have a deposit of £10,000 then you’ll need a £90,000 mortgage – making the loan to value 90%.
With shared ownership mortgages you’ll usually need at least a 5% deposit of your share of the property.
Make sure you meet the criteria for the shared ownership scheme. In England, this includes being a first-time buyer, a former homeowner who can’t afford to buy on the open market now or an existing shared homeowner, and having an annual household income of less than £80,000 (£90,000 in London).
Once you’ve found the property you want to buy, you’ll need to go to a financial assessment with the housing association to find out the size of share you’ll be able to afford to buy and the rent you’ll pay each month.
Not all lenders offer shared ownership mortgages so we recommend speaking to a mortgage broker who can provide specialist advice on shared ownership mortgages.
Once you’ve found the right mortgage for you, it’s time to apply for it. If you’re using a mortgage broker, they will make the application on your behalf.
You’ll need to provide certain paperwork as part of your shared ownership mortgage application, such as:
Shared ownership mortgage lenders include several High Street lenders, as well as smaller and specialist mortgage providers. For example, shared ownership mortgage lenders include:
However, a mortgage broker will advise you on which lender is best suited to your needs and find you the best shared ownership mortgage deal for you.
Shared ownership can be a useful way to get on the property ladder if you can’t afford to buy a home outright because you’ll need a smaller deposit and mortgage.
However, it won’t be right for everyone. You’ll need to make sure you can afford the mortgage alongside rent, service charges and other ongoing costs, which may increase over time. For example, while rent may be set at a discounted rate in the first year, it can only increase following rent reviews and any increases are linked to inflation.
Our Mortgage Expert, Sarah Tucker also warns, “Shared ownership can provide a valuable route into homeownership for buyers struggling to afford to buy on the open market. One of the biggest advantages is that buyers only need a deposit and mortgage for the share they are buying, which can make monthly costs more manageable and help people get onto the property ladder sooner.“
“However, it’s important borrowers fully understand that shared ownership comes with ongoing costs alongside the mortgage, including rent, service charges and maintenance costs, all of which can increase over time. Shared ownership won’t be suitable for everyone, but for the right buyer, it can offer a realistic and sustainable way to own a home.”
Also, don’t assume you are more protected because it is a government scheme. You still need to keep up repayments on both the rent and your mortgage. It is also down to you to manage the household bills.
Plus shared ownership properties are leasehold. As a result there are extra costs and restrictions such as limitations on sub-letting and you may need to pay ground rent charges too. So do instruct a solicitor not recommended by the developer to check the detail of your lease.
For more information on the pros and cons of shared ownership, read our guide Shared Ownership: What is it? Is it worth it?
Once you have bought your share, you can choose to buy a bigger stake in it. You could purchase up to owning 100% if you can afford it and if the housing association allows 100% ownership. This is called staircasing, you can find out more with our dedicated guide to staircasing your shared ownership home.
It’s advisable to start the remortgage process 6 months before your current deal ends. You’ll find the experience is much the same as with a standard remortgage, except your choice of lenders will usually be more restricted.
If you can now afford to buy the property outright by staircasing to 100% you will become eligible for a standard mortgage and typically get access to a wider range of mortgages and potentially at better rates too, depending on your circumstances.
This is possible but may be very difficult. Guarantor mortgages can be difficult to get for a standard house purchase, it may be even harder for shared ownership. We would recommend that you get fee-free expert advice from a mortgage broker. They can look at your circumstances and explain your mortgage options.
Unfortunately, not. Mortgage lenders will only allow the people named on the shared ownership lease to be on the mortgage application. This means they have to live at the property as their main residence.
But your parents could help you with your deposit in order to help you get on the property ladder.
This depends on what your credit issues have been and how recent they were. In many cases, it is very difficult to get a shared ownership mortgage with a bad credit rating. The local housing association offering shared ownership properties may also not accept your application.
But don’t assume you can’t do it without exploring it first. Also, you can do a lot to improve your credit rating. So, take the time to go through your credit report and do what you can to improve it.
Yes. You can get a shared ownership mortgage if you are self-employed, depending on your circumstances, however it can be more difficult. We would recommend contacting a mortgage broker for advice on this.
Many lenders expect a deposit, usually a minimum of 5%, to be put down on the share that someone is buying but some may be prepared to offer up to 100% of the share because they have the security on the full market value.
However, if you are considering this, you should get fee-free advice from a mortgage broker. Plus you’ll also need a housing association to agree and most require at least a 5% deposit.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
Your home may be repossessed if you do not keep up repayments on your mortgage. Please note some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. So make sure you use this site, this form or phone number for fee-free advice.
According to the government’s English Housing Survey, published in July 2026, there were around 252,000 shared ownership households in England in 2024-25, up from 161,000 in 2019-20. Shared ownership households account for 2% of owner-occupied households in England.
There are pros and cons to buying a home through shared ownership that you’ll need to consider.
For more information, read our guide Shared Ownership: What is it? Is it worth it?
Get fee-free shared ownership mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
You can only buy a property that has been built under the Shared Ownership scheme. These homes will either be new-build properties or resales – i.e. one that a current owner bought under the scheme and is now selling. Find out how to find shared ownership properties in our guide Shared Ownership: What is it? Is it worth it?
When buying a property through shared ownership, the property will be leasehold. Find out more about what’s involved in our guide on Buying a leasehold property.
If you don’t own 100% of your home (and even when you do in some cases), the housing association or local authority has the right to buy it themselves or sell it to an eligible buyer at a value established by a RICS valuer for a set period of time. To find out more about this process, read our guide Shared Ownership: What is it? Is it worth it?
You’ll usually need to get permission to make improvements to your shared ownership home, but check your lease to be sure. But bear in mind that if you do improve it, like by fitting a new kitchen, and this increases your home’s value, this means it will be more expensive for you to buy additional shares of your property as it will be worth more. Read our guide Staircasing your shared ownership.
With shared ownership mortgages, you’ll usually need a deposit of between 5% and 10% of the share you’re buying. For shared ownership mortgage advice tailored to your personal circumstances, get fee-free advice from an expert mortgage broker.
While not all lenders offer shared ownership mortgages, many do. But lenders’ criteria vary and the right mortgage for you will depend on your circumstances, so if you’re considering buying through the shared ownership scheme it’s advisable to speak to a fee-free mortgage broker to get their advice.
Getting a shared ownership mortgage usually takes around two months from start to finish, but it can be quicker, or take longer, depending on your circumstances. If you’re buying through this scheme, make sure you’re aware of all the pros and cons first. Find out more in our guide Shared Ownership: What is it? Is it worth it?
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