Shared Ownership Mortgages in the UK
Shared Ownership lets you buy a percentage of a property — usually 25%, 40%, 50% or 75% — and pay rent on the remainder to a housing association. Over time you can buy more shares (staircasing) until you own 100%.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Quick summary
- You buy 25–75% of the property (sometimes from 10% on newer schemes).
- 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.
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.
Frequently asked questions
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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