Shared Ownership Mortgages

At Mortgage Decisions our team of seasoned mortgage brokers is here to help you understand and secure a shared ownership mortgage that aligns with your current budget and future goals. We are established partners with several housing associations, including Sovereign, Vivid, Hyde New Homes, Raven Homes, Southern Housing, Abri Homes, Torus Homes and Salix Homes.

Shared Ownership is a government-backed scheme that helps people to achieve their goals of owning a home without the super expensive price tag. Unlike regular mortgages, shared ownership mortgages allow you to buy a portion of the home and then pay rent on the part you do not own. This is why it is also known as a ‘part rent, part buy’ mortgage.

At Mortgage Decisions, our team of seasoned mortgage brokers is here to help you in securing a Shared Ownership mortgage that aligns with your current budget and future goals. We understand that homeownership is not just about the present, but also about building equity and increasing your ownership over time. Through a process called “staircasing”, you’ll have the opportunity to grow your ownership of the home by purchasing larger shares.


Helping thousands to buy a new home.

To be able to qualify for Shared Ownership, you just have to make sure your household income is £80,000 or less per year, or £90,000 or less if you live in London. First-time buyers, people that are already shared owners, and anyone who struggles with being able to afford an entire home on their own are all welcome to apply.



FIND OUT IF YOU QUALIFY BY GAINING AN ASSESSMENT – Call the team on 03454 500200 or email

To learn more about how Shared Ownership works and address any specific questions you may have, please refer to our frequently asked questions (FAQs) below or read our guide here. Also, feel free to reach out to us directly at 03454 500200. With our nationwide presence, our dedicated support and guidance are never far away as you start on your homeownership journey.

What is a shared ownership mortgage?

Put simply, Shared Ownership Mortgages are a way to own a home without having to pay for the entire property. Instead, you would purchase a portion, or “share,” and then pay rent on the remaining amount.

This government-backed scheme provides you with a way to call a property your own while benefiting from the flexibility and affordability of shared ownership.

There are several types of Shared Ownership. Here are the most common:

  • Fixed Rate: the interest rate you pay on your mortgage will stay the same throughout the agreed term, which is usually between 2 and 5 years. With this mortgage, you will know exactly what to pay each month without any unexpected fluctuations.
  • Variable Rate: the interest rate you pay is determined by your lender and is capable of fluctuating. This means you may have to pay less when interest rates are low. However, you should be prepared to cover higher monthly payments if the interest rate increases. Your interest rates will either be linked to the lender’s Standard Variable Rate (SVR) or the Bank of England base rate.

How does a shared ownership scheme work?

A shared ownership scheme helps aspiring homeowners to purchase a share of a property while a housing association or registered provider retains ownership of the remaining portion. Also known as ‘part rent, part buy’, with this mortgage, you will buy a percentage of the property, and then pay rent on the remaining part. This unique arrangement opens doors for those who are unable to afford a property outright or struggle to save for a substantial deposit.

Here’s how shared ownership schemes work:

Instead of purchasing an entire property, you would only buy a percentage (or share) of the property/home. The percentage you buy is based on how much you can afford. Don’t worry, if you ever want to buy more of the property, you can do that by “staircasing.”

On the part of the home that you do not own, you’ll have to pay rent to the owner of that share.

Here’s a quick picture of what this could look like:

  • You find a home you like and decide you want to buy a 25% share.
  • The home costs £500,000 so your share would be worth £125,000.
  • Your deposit will have to be 5%-10% of the share you’re buying. To make it easy, we’ll say you want to put down 10% which is £12,500.
  • The housing association’s share (the person that owns the rest of the home) would be £375,000.
  • The mortgage you would need for the property is £112,500 (£125,000 minus your deposit).

One of the advantages of shared ownership is that housing associations typically charge rents below the private rental market!

Who is eligible for a shared ownership mortgage?

First-time buyers, existing shared owners, and anyone who wants to purchase a home but cannot afford to purchase one outright are all eligible for Shared Ownership Mortgages. Your lender will have to assess your credit history as well as your ability to afford monthly payments before you can be approved for the mortgage.

As long as your credit meets the requirements and your household income is less than £80,000 a year (£90,000 if you live in London), you’ll probably be approved.

How do I apply for a shared ownership scheme?

Applying for the Shared Ownership scheme is a straightforward process. Just follow these steps:

1. Determine your eligibility:

To be eligible, this typically means you’re a first-time buyer, an existing shared owner, or someone who used to own a home but can’t afford one currently. Your household income should be below £80,000 per year (or £90,000 in London).

2. Research and find suitable properties:

Once you’re confident about your eligibility, you can begin to explore available Shared Ownership properties. You can browse through dedicated websites or get in touch with housing associations directly. While looking, you should consider factors like location, size, and affordability to narrow down your options.

3. Contact a mortgage broker:

To navigate the mortgage application process smoothly, it’s highly recommended to contact a mortgage broker who specializes in Shared Ownership. They’ll provide expert advice, help you choose the right shared ownership mortgage, and guide you throughout the application process.

4. Obtain a Decision in Principle (DIP):

Getting a Decision in Principle (DIP) is a helpful step because it helps you to understand your budget and helps streamline your application. A DIP is a document from a mortgage lender stating the amount they’re willing to lend you based on your financial information.

5. Complete the application:

Once you’ve selected a property and secured a DIP, it’s time to complete the application. This involves submitting necessary documents such as proof of income, identification, and bank statements. Your mortgage broker will assist you in ensuring all the required information is provided accurately.

6. Wait for the mortgage offer:

After submitting your application, the lender will review the information and carry out assessments like credit checks and property valuations. Once approved, you’ll receive a mortgage offer outlining the terms and conditions of your shared ownership mortgage.

7. Exchange and completion:

Once you receive the exciting news of your mortgage offer, it’s time to take the next steps towards securing a home. Now, you’ll have the opportunity to exchange contracts with the housing association or developer.  At this stage, you’ll also be required to pay the agreed deposit.

What are the advantages of shared ownership?

There are many advantages to purchasing a shared mortgage. Here are a few:

  • Affordability: Since you’d only be buying a part of the home, it will be way cheaper than having to purchase the entire property. That’s why this mortgage is great for people with smaller savings.
  • Lower Initial Costs: With shared ownership, the initial costs are typically lower compared to buying a property outright. As you are purchasing a share rather than the whole property, your upfront expenses, such as the deposit and associated fees, are significantly reduced. This financial advantage frees up your resources to be utilized in other areas, such as furnishing your new home or building an emergency fund.
  • Smoother Mortgage Approval: Getting approved for a shared ownership mortgage is often more achievable than securing a traditional mortgage. Lenders recognize the shared ownership model and have tailored their mortgage products, accordingly, making it easier for you to meet their lending criteria. This increased accessibility opens doors to homeownership for individuals who may have otherwise faced challenges in obtaining a mortgage.

If you’re interested, check out our mortgage calculator to determine how much you can borrow for a traditional mortgage.

  • Opportunity for Equity Growth: Shared ownership allows you to benefit from any increase in the property’s value over time. As property prices rise, the value of your share also appreciates, building equity. This equity can be utilized in the future to staircase (increase your ownership share) or potentially move to a larger property. This potential for growth offers a valuable asset-building opportunity and a pathway to increase your wealth over time.
  • Flexibility to Staircase: Staircasing is a unique feature of shared ownership that allows you to increase your ownership stake over time. As your circumstances improve and you’re ready to take on a larger share, you can purchase additional percentages of the property. Staircasing gives you the flexibility to adapt your ownership according to your financial capacity and long-term goals, ultimately working towards full ownership if desired.

Frequently asked questions

How much deposit do I need?

What is staircasing?

Will I be able to sell my home when I want?

Is shared ownership right for me?

Can I make home improvements?

Can you build an extension on a shared ownership house?

Can you buy a shared ownership house outright?

Which properties are available for shared ownership?

How much deposit do I need for a shared ownership mortgage?

Will my shared ownership property be freehold or leasehold?

How much stamp duty do I pay for shared ownership properties?

What are the alternatives to shared ownership mortgages?

Because we play by the book we want to tell you that…

Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

Speak to our experts

With access to 1000s mortgages from over 90 high street lenders, we can help you find the right mortgage. Our five-star Google reviews back this up. Call us now and speak to a member of our experienced team.

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