Shared Ownership Mortgages in the UK
Shared Ownership involves buying a share of a property and paying rent on the remaining share. The starting share, ongoing costs and ability to buy more depend on the home, lease and provider.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Quick summary
- Buy a share, pay rent on the rest, and check the starting share and terms with the provider.
- You pay rent (usually 2.75–3%) on the share you don't own.
- Mortgage is on your share only — so deposits and mortgages are much smaller.
- You're responsible for all maintenance and ground rent on the full property.
- Staircasing — buy more shares over time (typically 1% at a time on newer schemes; 10% on older).
- When you sell, the housing association usually has first right to buy within 8 weeks.
Check the official Shared Ownership guide for the starting share and provider terms.
What lenders may look at
- Share percentage you're buying
- Lease length on the property (lenders want 70+ years remaining after end of term)
- Rent + service charge as part of monthly outgoings
- Housing association reputation
- Your income and deposit
Documents you may need
- Memorandum of Sale from housing association
- Lease (usually 99–125 years)
- Standard mortgage application pack
- Affordability assessment from housing association (separate to lender)
Common issues
- Short lease (under 70 years remaining at end of mortgage term) — lender will decline.
- High service charge + rent makes mortgage affordability tight.
- Cladding / EWS1 issues on flat — lender requires safe rating.
- Plan to staircase to 100% — check the lender will support that route.
People also ask
Can I get a mortgage for Shared Ownership?+
Yes — but the lender pool is narrower than standard residential. Halifax, Nationwide, Santander, Leeds BS and several specialists offer Shared Ownership products.
How much deposit do I need?+
Typically 5–10% of the share you're buying (not the full property value). On a £200k property where you buy 50%, that's a deposit of £5–£10k.
What's staircasing?+
Buying additional shares over time, usually 1% at a time on newer schemes or 10% on older. Eventually you can own 100%. Each staircase needs valuation and (often) a remortgage.
Can I sell a Shared Ownership home?+
Yes — but the housing association usually has 8 weeks to find a buyer at the same share you own. If not, you can sell on the open market.
Is Shared Ownership a good idea?+
It depends — much lower upfront cost than full ownership, but you pay rent + mortgage and have full responsibility for maintenance. Suits buyers in expensive areas who otherwise couldn't get on the ladder.
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