Trusted shared ownership mortgage advisors.

Shared ownership mortgages

Your home may be repossessed if you do not keep up repayments on your mortgage. When The Bank Says No is a mortgage broker, and not a lender.

If you’re looking for a shared ownership mortgage, we’re here to share the burden. Give our team a call and we’ll guide you through the process.

Your home may be repossessed if you do not keep up repayments on your mortgage. When The Bank Says No is a mortgage broker, and not a lender.

Mortgages for Shared Ownership Finding The Best Shared Ownership Mortgage Deal For Your Circumstances

Shared ownership mortgages are different to residential mortgages and enable those who might not have the affordability to purchase all on their own, and get their foot on the property ladder. If you are looking to purchase a shared ownership property, our specialist affordable housing mortgage advisors are here to help you get started.

We'll explain all the intricacies of this type of ownership, and what the financial implications will be for you in the future. When your income is limited and saving a big deposit is difficult, our team are determined to find you a solution and help you kickstart your future plans.

What is a shared ownership mortgage?

Also known as ‘Part Buy, Part Rent’, a shared ownership mortgage is an alternative solution for first-time buyers who may be struggling for affordability. Instead of purchasing a whole property, you purchase a share in a home – usually between 25% and 75% – and pay rent (usually below market value) on the rest to a local housing association. In the future, you can do what is known as staircasing and purchase additional shares up to 80% or 100% depending on the rules particular to that property.

If you think the shared ownership model might suit your circumstances, give us a call! Our team of expert mortgage advisors will explain the intricate details of this type of mortgage and help set you up for success with mortgage lenders.

Who is eligible for a shared ownership mortgage?

To be eligible for shared ownership, you would normally need to meet the following shared ownership eligibility criteria:

  • You are at least 18 years of age.
  • You have an annual household income of below £80,000 (or £90,000 if you live in London).
  • You don’t own another home in the UK or another country.
  • You are a first-time buyer or a previous homeowner that now can't afford to buy (or you already live in a shared ownership home or rent from a council or housing association).
  • You can afford to meet your monthly mortgage payments and also pay monthly rent.

Get Started with a Mortgage for Shared Ownership Broker

Maximise your chance of approval with specialist advice from an expert in Mortgage for Shared Ownership

What are the benefits of a shared ownership mortgage?

Shared ownership can be a great solution for many people looking to get their foot on the property ladder. Here are some key advantages of this type of mortgage.

  • Requested deposits are usually lower than with a regular property purchase (around 5-10% of the share you are buying is quite typical).
  • Shared ownership mortgages are usually lesser in value, making them more affordable.
  • There is the option of staircasing meaning as you earn more, you can buy additional equity in your home.
  • Providing you can afford to keep up with payments you can have the security of living in the home for the term of your lease, usually 99-125 years.

What are the disadvantages of taking out a shared ownership mortgage?

Despite the positive aspects of shared ownership mortgages, there are some implications that are worth thinking through before making a decision.

  • Not all lenders offer shared ownership mortgages, so you may limit your borrowing options even with a good credit history.
  • You have to pay 100% of ground rent and a service hold because the property will be leasehold. However, if you staircase up to 100%, you will have the option of purchasing the freehold title.
  • You may have to obtain permission from the housing association to make any structural changes to your home.
  • When selling the property, the housing association may have a say in who you sell to.

Shared ownership mortgages FAQs.

This all comes down to how much of a share of the property you own. If you own 100%, you are generally free to sell your home as you choose on the open market, though some housing associations put in clauses that state they have first refusal for the first 21 years.

If you don’t own 100%, then the new purchasers would have to fit within the shared ownership criteria and go through the same application process as you with the same housing association. For more guidance on the future implications of shared ownership, talk to our affordable housing mortgage experts!

You can make changes to your shared ownership property, such as decorating, but any structural changes like knocking through a wall or adding an extension would need the permission of the housing association.

It is always best to check the terms of the lease to see if there are any restrictive covenants before you buy. For example, some shared ownership properties such as flats may even limit your ability to have a pet.

Staircasing is a process through which you can build up your percentage share in the property. When you buy your shared ownership home, you will normally do so by purchasing a lower share of the property’s equity.

Throughout your ownership, you will have the option to buy additional shares whenever this is affordable for you, in 1% increments. How much you pay for these additional shares will depend upon the value of your home. For example, if it was valued at £250,000 and you wish to purchase an additional 25% share, the cost would be £62,500.

Shared ownership can be an option even if you have bad credit. Of course, any adverse financial history is going to limit your options, and the more complex this history, the more limited your options will be. You could face higher mortgage fees and interest rates.

However, bad credit doesn’t mean shared ownership is off the table. In fact, our expert mortgage brokers have access to plenty of lenders who will be more than willing to approve your shared ownership mortgage even with a complex past.

Everyone is human, and these things happen – but they shouldn’t get in the way of your home owning plans! Call our team today with your credit report at the ready and we can discuss the mortgage options open to you and the best way to move forwards with shared ownership.

On a shared ownership property you may need to pay stamp duty on the share you are purchasing. The good news is that shared ownership properties are often purchased at a fraction of the market value, so you may avoid paying stamp duty altogether.

Stamp duty can be quite complex, but we can advise you on whether it will be relevant in your circumstances, depending on the value of the property you are looking to buy and your ownership share of the property.

Monster static on grey

Mortgage for Shared Ownership Calculator

Professional advice & support for your shared ownership mortgage.

When the Bank Says No is a team of affordable housing mortgage advisors trusted by first-time buyers all over the UK for the quality of our advice and the friendliness of our approach. We're determined to find your mortgage, even when there are obstacles in your path.

Whatever you've been through and wherever you're going, we're here to help you realise your future plans. From analysing the market to working out shared ownership affordability to finding appropriate mortgage deals and helping you finetune your application, we'll be here every step of the way.

Advice you can trust.

We're here to help you buy your first home against all the odds. Shared ownership can be a great way to do that, but you might be worried about the implications.

We won't push you into anything or leave you in the dark. Instead, we'll be on hand every step of the way to explain, reassure and guide you towards the move-in day. Our friendly team are taking the fear out of the mortgage process. Let's get your journey started!

Let's get the ball rolling.

We can support you and help you to make yourself as attractive to banks as possible, ready for your next application!

Check your credit file.

In order for us to assess your credit history and suitability for different mortgage products, you will need to check your file.