Shared Ownership mortgages

Need a Shared Ownership mortgage? You’re in the right place. We’re specialist mortgage brokers with a proven track record of getting mortgages for people buying through the Shared Ownership scheme.

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What is Shared Ownership?

Shared Ownership (sometimes called Part Ownership) is where you buy part of a property and rent the rest. You take out a mortgage on the bit you're buying, then pay a reduced rent on the bit you don't own. You’re able to buy between 25-75% of the home, and can buy some or all of the remaining share later on when you can afford to. You can read more in our Shared Ownership Explained Guide.

Shared Ownership is only available for new-build homes and some existing properties via specific resale programmes from housing associations. They’re always leasehold, meaning you won’t own the land your property is built on and may have to pay ground rent and maintenance costs.

It helps people who can’t save up a big deposit to still get on the property ladder. For that reason, they’re perfect for first-time buyers. 

Because you start off by buying a small share in the property, you’ll need a smaller deposit than you would if you were getting a full mortgage without shared ownership. Over time, you’ll be able to purchase the remaining shares – a process known as staircasing – and can stop paying rent on the property. 

Not all lenders will help you if you want to get a Shared Ownership mortgage, because they’re not set up for the extra complexity. You’ll need an experienced Shared Ownership mortgage broker to find you the right lender. That’s where we come in! Make an enquiry to speak to one of our Mortgage Experts.

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How does Shared Ownership work?

With Shared Ownership, you can own between 25% and 75% of the property to begin with, which you can then increase over time.

After you’ve registered for Shared Ownership you can start house-hunting. Your local housing association will need to carry out a financial assessment to see how much you can buy and how much you’ll need to rent. 

You should start to gather the paperwork you need for your Shared Ownership mortgage application so you’re as prepared as possible. You'll need:

  • Proof of identity (passport or driving licence)

  • Proof of your current address (usually a utility bill)

  • Payslips or accounts if you’re self-employed

  • Proof of your deposit

  • A credit report - you can get a full version using checkmyfile* (Try it FREE for 30 days, then £14.99 a month - cancel online anytime).

Some lenders don’t offer Shared Ownership mortgages, so it’s a good idea to work with a Shared Ownership mortgage broker who can find you the right deal. Our Mortgage Experts know how to do just that. Make an enquiry to get started.

Most Shared Ownership homes are new builds, but some homes being resold by a housing association and all are sold on a leasehold only basis.

As Shared Ownership is a government scheme, it differs slightly in each of the countries of the UK, so be sure to check the specifics where you live at gov.uk.

*Heads up, when you click through to our affiliate links, we may earn a small commission at no extra cost to you. We only recommend sites we truly trust and believe in.

Can I buy the remaining percentage at a later date?

Yes, although you’ll have to have owned the home for a certain period of time before you can do this. It’ll be in your terms of your lease but will usually be a year or two.

This process is known as ‘staircasing’ and allows you to gradually increase the share of the home that you own, usually up to 100% but in some cases, the housing association may limit the amount of shares you can buy.

Staircasing means that you won’t have to pay as much rent, but also makes things easier if you come to sell the property in future. You’ll be able to sell it on the open market at full value and you’ll get the full benefit from any increases in house prices.

Read more in our Guide: Shared Ownership Explained.

Who is eligible to buy a shared ownership property?

To qualify for shared ownership, you need to have a combined household income of less than £80,000 (£90,000 in London).

You also need to either be a first-time buyer, an existing shared owner, or in a situation where you used to own a home but cannot afford to do so now.

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

With Shared Ownership, you only need to put down a deposit on the share you're actually buying, so it’s less than it would be with a regular mortgage. The average Shared Ownership deposit is between 5-10% of the share.

Alongside your deposit, you'll need to put aside money for moving costs, stamp duty (if applicable) solicitors fees and leasehold fees. If you're buying a flat you'll also need to factor in yearly ground rent costs. Ground rent covers any building maintenance costs and upkeep of communal areas.

Can I get a shared ownership mortgage with bad credit?

It’s definitely possible to get a Shared Ownership mortgage with bad credit! But it’ll more difficult compared to someone with a perfect score. That’s because you’ll be viewed as more of a ‘risk’ by the lender and housing association.

The big banks and high street lenders might turn you down, but there’s specialist lenders who’ll look at your situation on a case-by-case basis. They’ll look at the story behind the numbers, and assess your ability to afford a mortgage now, rather than focus on previous financial blips. 

This all depends on the severity of your bad credit, as well as how recent your credit issues are, but don’t be disheartened if you do have a bad credit score - you have options! You’ll really boost your chances of getting accepted if you work with a bad credit mortgage broker. 

Read more in our Guide: Can I Get a Shared Ownership Mortgage With Bad Credit?

Why use Haysto?

We get how it feels when you’re refused a mortgage. We’ve been there. Haysto exists because the mortgage world is broken. If you don’t have a shiny credit rating, you’re self-employed with a complex income, or just don’t fit the mould, the odds are completely stacked against you. We just don’t think that’s fair.

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