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Shared Ownership Mortgage (Part 1)
Lee Gathercole and Neezam Romjon explain how a shared ownership mortgage works. Episode one of two, recorded in February 2026.Podcast approved by The Openwork Partnership on 11/03/2026.
What is shared ownership and how does this work?
It’s a really good scheme, particularly if you’re buying a first home. You buy a share within a property – a percentage. If you own a 50% share, for example, the other half will then be owned by a local authority or a housing association.
A common misconception is that you share the property with someone else, but it’s not quite like that. You’re effectively sharing the ownership with a housing provider to get on the property ladder, especially if you can’t quite afford the full amount.
You might buy 50% of a property on a mortgage, and you pay rent to the housing association on the remainder. So, if you can’t quite get to the full 100% for a property, you can buy a share instead. It could be as little as 10% or 15% up to 80%, depending on what you can afford.
Who is eligible for shared ownership? Who can get a shared ownership mortgage?
It’s open to most of the population. Eligibility criteria can vary depending on the housing association or location. The overall aim of shared ownership is to help those that need it, so you’ll need to evidence your income and your affordability position.
It works slightly differently to just buying a house in the usual way – there are a few more hoops to jump through and more criteria to meet. Your household income needs to be £80,000 a year or under – it’s slightly higher in London at £90,000.
If you’re earning more than that, generally you may not be the target market for shared ownership – you could potentially buy without it. The scheme is there to support people who are struggling to get a mortgage or save a deposit for the type of property they’re looking to buy.
It’s not just for first-time buyers. A lot of first-time buyers use the scheme, but it’s open to home movers as well, or people that bought in the past but are no longer property owners.
Then it’s about getting the mortgage you need. Do you have a high enough credit score? Do you have the deposit? You’ll need to meet affordability assessments and criteria with the bank you’re borrowing with.
Which lenders offer shared ownership mortgages? Do all of them?
Not all lenders offer shared ownership mortgages, but quite a large portion of the market does – including some high street banks.
So if you’ve got a few blemishes on your credit file or fairly unique circumstances, there should be a lender to support you. Finding the right one is something we can help you with, of course.
Which properties are available for shared ownership?
When you’re looking at properties on Rightmove or Zoopla, it’s generally quite clear that a property is available on shared ownership. You can’t just buy any property, though – it needs to be specifically sold through the scheme.
In terms of the types of properties, they vary. You could buy a flat or an apartment, and it could be one-bed, two-bed, three-bed, four-bed or more. There is no restriction specifically on the type of property. It’s just making sure it’s sold through the scheme itself.
A lot of new build homes and properties built within the last 10 years or so are often sold through the shared ownership scheme. There’s no specific restriction.
One thing to keep in mind is that the property you’re buying meets the criteria for the mortgage lender. If you’re buying a flat through the shared ownership scheme, you might need a deposit, while on a house you might get away with zero deposit or a smaller amount.
How much deposit do I need for a shared ownership mortgage?
Most mortgage lenders will require a minimum of a 5% deposit, based on the full value of the property. On a standard purchase at £300,000, for example, you would need £15,000.
But the great thing about shared ownership is that if you’re just buying a 50% share of the property, you only need 5% of that share amount. So in that example you would only need £7,500.
So, 5% is generally the minimum, but some lenders may not require a deposit at all. There are some extra criteria to meet to do that, however.
Will my shared ownership property be freehold or leasehold?
Generally, most houses are freehold, while most flats or apartments are leasehold. But because of how the shared ownership scheme works, nearly all properties will be leasehold. That might put some people off – it’s not quite the same as buying a house on the open market where there is no lease and you are the freeholder.
When you’re buying through the scheme, there is almost always a lease involved which may affect your decision on whether to proceed. If it is on a lease, but it’s a long lease of 900 years, there won’t be huge problems in getting a mortgage.
Once you own the property, you have the opportunity to ‘staircase’ which increases your share. If you then decide you want to own the freehold and it’s a house, there might be a pathway to do that.
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Can I buy a bigger share of my home at a later date?
Yes. Most schemes will allow you to buy a bigger share – although this is something to double-check.
If you start by buying a 50% share, in a few years’ time you might look to increase that to 75%, or maybe 100% – at which point you’re no longer on the scheme. Effectively, you would remortgage your property to increase the borrowing, or use cash to buy an additional share.
There is a legal process involved in buying another share. But the benefit is that you own more, and your rent should reduce as the share you don’t own decreases.
Most schemes allow you to buy a bigger share, but do check. The usual mortgage criteria would apply, which we can support you with.
Can I ever fully own a shared ownership home?
A lot of people have this aim when buying through the shared ownership scheme. Many would ideally prefer not to need the scheme, but it is great for those that do.
It’s also good to have a plan for how you will increase your share and eventually own the property outright. Note that some properties on the scheme may have a cap or restriction on how much you can staircase up to.
If you can staircase up to 100%, you will become the full owner of the property. There are stepping stones to help you get there. There might be a certain limit to the number of times you can increase your share – so you may need to plan strategically. A broker can help you with that.
What happens if the value of my house changes?
If your property value went up over time, so would the value of your share.
Let’s say that £300,000 property from before is now worth £350,000 and you own 50%. Your share is £175,000, so it’s gone up by £25,000 – which is fantastic. But the downside is that if you wanted to increase your share, it will now cost a little more as the value is higher.
The same goes if it decreases. If the property drops in value, so does your share. If the value dropped to £250,000, your share is now worth £125,000. I don’t see that happen very often. Your share will go up and down in line with the overall property value, but you only need to worry about that if you’re selling your home or buying another share.
What if I have bad credit? Can I still get a shared ownership mortgage?
There are two hurdles to overcome. One is qualifying for the shared ownership scheme itself, and the second is qualifying for a mortgage. With housing associations, often if you tick their initial boxes around income and affordability, they’re not too worried about your credit score. It’s the mortgage side you might find more difficult.
As always with bad credit, it depends on how severe it is. A couple of late payments or something from a few years ago won’t have too much impact. Or perhaps you have a low credit score, but not from missed payments – it’s your level of debt, or that you haven’t been in the UK for very long. Sometimes high street banks can even accept that – or somewhere slightly off the high street.
Defaults with large balances, multiple missed payments, payday loans, debt management plans or CCJs in the last couple of years will make it more challenging to get a mortgage.
You may be accepted by certain lenders if you can increase your deposit of 10%, 15% or even 25%. It’s not impossible, but it’s difficult to do this on your own – it’s a question of knowing which lenders to talk to.
We would assess your credit report, have a conversation with you and then find a lender that fits your profile. You’ll then have all the information you need to make a decision. Quite often, clients will proceed, while for others it can make sense to wait six or nine months for something to drop off your credit report.
What else do we need to cover before returning for part two?
It’s not always straightforward getting a shared ownership mortgage. It’s a really good scheme, but it doesn’t suit everyone. Usually it’s best for those who don’t have enough deposit or the borrowing capacity for a standard purchase. In those situations, it’s a fantastic scheme to get onto the property ladder with.
Key Takeaways:
- Shared ownership allows you to buy a percentage of a property, typically between 10% and 80%, and pay rent on the remaining portion to a housing association or local authority.
- Eligibility is generally set for households with an income of £80,000 a year or under (or £90,000 in London), and the scheme is available to both first-time buyers and home movers who are no longer property owners.
- A major advantage is that the required minimum 5% deposit is usually based only on the value of the share you are purchasing, not the full value of the property.
- Most properties purchased through the scheme are leasehold, differing from buying a freehold house on the open market.
- Homeowners can increase their share of the property over time, a process known as ‘staircasing,’ which reduces the amount of rent they pay and can lead to 100% full ownership.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
For specialist tax advice, please refer to an accountant or tax specialist.
Approved by The Openwork Partnership on 11/03/2026.
Shared Ownership Mortgage (Part 2)
We continue the conversation on shared ownership with Lee Gathercole and Neezam Romjon. Episode two of two, recorded in February 2026.
How do I sell my shared ownership home?
If you currently own a shared ownership property and you’re looking to sell it, an estate agent can guide you through that process. It does work slightly differently to selling a normal property.
Generally, the first step is to make the housing association aware that you intend to sell the property – or your share of it. They’ll talk you through the process. Obviously, the type of buyers will be restricted, because they too need to meet the shared ownership eligibility.
You don’t normally just put it straight on Rightmove. You notify them so that they can find a buyer who meets the criteria.
Usually you also need a valuation to make sure the selling price is accurate, as they have an interest. The housing association might own 50%, for example, so they’ll ask for an accurate valuation from an independent RICS qualified surveyor, which you’d pay for.
You then have to sell at that valuation price. You’re a bit more restricted in that area. You can’t put the price up if the market is strong or properties are selling quickly.
The housing association may find a buyer directly – they might have a waiting list of people looking to buy. Or, you can list it on the open market through an estate agent and they can try and find a buyer for you.
In terms of the rest of the process, note that you might have additional legal fees because of that third party involvement with the housing association.
Can I make home improvements to my shared ownership property?
You can do general decoration and painting, but any major structural changes like building an extension or replacing a kitchen would need written permission from the housing association.
You only own part of the property, so it’s less straightforward than full ownership, where you could just get on and do it.
How does the remortgaging process work with shared ownership? Any differences here?
It depends on whether you’re looking to increase your share or to just switch to a new lender for a more cost-effective deal.
With a straightforward remortgage, not increasing your share, you just need to make sure the new lender accepts shared ownership mortgages, as these aren’t available with every bank. They will run the standard affordability and credit checks, and factor in your rent and any service charge payments you make each month, to ensure you can afford the mortgage.
They’ll do a valuation and there’ll be some legal work. Again, make sure the solicitors know this is a shared ownership property and a housing association is involved. That will increase the cost as more legal work is required.
If you’re staircasing, there will be a few more layers to the process. You would need to get a valuation done and get consent from the housing association to sell the additional share to you. You may want to buy a bigger share than they’re willing to sell you, so have those conversations before you start the process.
It’s really important to start that process early – give yourself at least six months before your current mortgage is due to end, especially if you’re staircasing. It’s something that we often help clients with.
How does stamp duty work for shared ownership properties?
With stamp duty, generally a solicitor will confirm what applies to you. My understanding is that with shared ownership, there are potentially two options.
You could just pay stamp duty on the share that you purchase, if you’re not a first-time buyer with a stamp duty exemption. Or, you could pay stamp duty on the full market value of the property.
Whether stamp duty is applicable to you and how much it will cost, will depend on your circumstances – such as whether you’re a first-time buyer – and the property price.
If you pay stamp duty at the full market value and increase your share over the years, you might not need to pay stamp duty in the future. Whereas if you just pay stamp duty on the share, which will probably cost less, you may have to pay further stamp duty when you increase your share in future.
Always speak to a solicitor if you’re considering buying a shared ownership property. There are calculators online as well, but the cost depends on the circumstances.
Are there any other fees around shared ownership?
When buying shared ownership property, you will need to have a deposit ready to go.
You’ll potentially have some mortgage fees – an arrangement fee or product fee to the bank, and perhaps a valuation fee. Those can vary.
Arrangement fees and product fees can be anywhere between zero and £2,000. That can often be added to the mortgage, but not always. Valuations are often a few hundred pounds, paid upfront. If you’re working with a mortgage adviser or a broker, some of us charge fees, some of us don’t. Just be really clear on what the fee is.
Legal fees are often the biggest one for people buying through the shared ownership scheme. We often recommend solicitors for our clients and make sure that shared ownership is built into the quote, but if you’re sourcing your own solicitor, make it clear that you’re buying through the shared ownership scheme – they’ll usually add additional costs for that.
Sometimes there’s a housing association fee to buy or staircase. That might also be a few hundred pounds. Often we help clients arrange a survey once the mortgage has been approved. A lot of people think this is done by the bank or solicitors, but the bank will do a very basic valuation and solicitors won’t do a survey at all.
If you want someone to inspect the property and make sure it has good structural integrity it’s best to instruct your own independent surveyor. That might sit at around £500 to £600 for a level two survey.
We’ll break all the fees down for you based on your circumstances to give the total costs – whether you’re starting out and want to budget for it, or you’re ready to move forward and want to be clear on those fees.
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What are the alternatives to shared ownership mortgages?
You would mainly apply for shared ownership if you don’t quite have the full deposit to buy at full value, or you don’t have the income to get the borrowing you need.
As we’re talking in February 2026, there are mortgages that allow deposits at lower than 5%.
Some only require £5,000, and there are even zero deposit mortgages if you meet the qualifying criteria.
If you’re struggling with deposit, shared ownership might not just be the only option for you, We can help you explore that.
In terms of borrowing capacity, lenders are finding clever ways to offer first-time buyers higher income multiples. Some lenders could offer you six times your income, for example. We can help you look at what’s out there and whether you could borrow the full amount you need, or use a lower deposit.
If you can afford a property in full, generally we wouldn’t recommend the shared ownership scheme, as it’s more cost effective to buy 100% of your home from the start.
What are the advantages and disadvantages of shared ownership?
I’m going to give you three advantages and three disadvantages. The first positive is that there’s a lower deposit barrier. You only need a deposit for the share you’re buying, not the full property value. That might allow you to get on the property ladder quicker.
Also, it allows people to access locations they couldn’t afford otherwise. If you’re really keen to own a property in a certain area but house prices are higher there, you might be able to afford a 50% or 60% share and live in the location or home you want.
Thirdly, you start building equity. Instead of renting, you could buy a 25% share through the scheme. You will then benefit from any increase in property values over the time you own it. If you’re renting, you don’t build up any equity.
The first disadvantage is that you do still have to pay rent. You’ll have a mortgage and you’ll pay rent on the remaining share – and there will usually be a monthly service charge as well. It could end up more expensive per month compared with renting or owning outright.
Secondly, you lose out on future property growth compared with 100% ownership. If the property value goes up and you own 100% of the property, any valuation increase boosts the equity within your home. If you only own 50% of a property, you’re only gaining 50% of that profit.
There are also more restrictions and costs involved. Buying or staircasing or remortgaging all involve more admin, getting your own valuations done and additional fees.
How do I apply for shared ownership? What’s the process?
Checking your eligibility is the first thing. Generally there is an income cap of £80,000 per year – or £90,000 per year in London. If you earn more than that, it’s unlikely you’ll qualify for the scheme.
You also can’t own another property. If you already have a Buy to Let or a home you live in, you can’t buy under shared ownership.
Speaking to a mortgage adviser is a great place to start to explore eligibility, what you can borrow, the size of shares and property values. If you don’t have a property in mind, we can look at what you might be able to buy and the costs.
Planning ahead will give a good early indication as to whether you qualify for shared ownership and whether it’s right for you. We’ll confirm how much you can borrow.
When you find a property, you’ll undergo an assessment with the housing association offering the other part of the share. Their checks explore affordability, income and eligibility. They may go through your income and outgoings to make sure you qualify and you can pay the rent as well as the mortgage, which is really important.
Once you’ve passed all of the checks with the housing association, you can start working on getting your mortgage fully approved and instructing a solicitor. When the mortgage is approved, the solicitor proceeds with the legal work.
How can a mortgage broker help here? Have you got any final thoughts?
There’s a lot of information here. Shared ownership is complicated and there’s lots to consider, so make sure you’ve got all the information you need to make the decision.
A lot of people ask whether the scheme is right for them before we dive into the process. Often, it might not be. We understand the scheme and who it’s aimed at, and what you need to consider. We’ll have that conversation with you and give our opinion.
We’ve got access to many lenders – and not all of them will offer you a mortgage on the shared ownership scheme. You might go straight to your own bank because they know you – but they may not be able to offer you a shared ownership mortgage. It’s not because they don’t want to lend to you, it’s that they don’t offer mortgages through that scheme.
We’ve got the lenders available and we stress test the numbers for you to make sure it is affordable. We know what to look out for – we’ll make sure you won’t overlook certain fees and explain the whole process. We also help you plan long-term, to staircase over time – so you know what that timeline will look like.
We take away as much paperwork and admin as possible, to smooth the process and make it enjoyable for you. Whether it’s a remortgage or a purchase, shared ownership is quite paperwork-heavy – so let us help with that.
Key Takeaways:
- Selling a shared ownership property is restricted, requiring notification to the housing association first, a required valuation by an independent surveyor, and selling the share at that valuation price.
- Making major home improvements, such as structural changes or replacing a kitchen, requires written permission from the housing association since you only own a portion of the property.
- Remortgaging, particularly if you are ‘staircasing’ (increasing your share), involves securing a valuation and getting consent from the housing association, and it’s best to start this process at least six months before your current mortgage ends.
- Shared ownership allows you to access the property ladder with a lower deposit and live in areas you might not otherwise afford, but you still pay rent and a service charge on the remaining share and miss out on full property growth profit.
- A mortgage broker can help navigate the complex process, check eligibility, access lenders who specifically offer shared ownership mortgages, and assist with the heavy paperwork and administration.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
For specialist tax advice, please refer to an accountant or tax specialist.
Approved by The Openwork Partnership on 11/03/2026.
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