top of page
  • Writer's pictureAsha Fantham - Director

Shared Ownership

Updated: May 3, 2023

Getting on the property ladder can seem like an unattainable dream for many, however, shared ownership mortgages offer a possible solution, allowing first-time buyers and those on a lower income to buy a home without needing to pay the full cost upfront

So, What Is A Shared Ownership Mortgage?

A shared ownership mortgage is a scheme whereby a buyer purchases a share of a property, usually between 25% and 75%, and pays rent on the remaining share owned by a housing association or developer. The buyer can then gradually increase their share in the property by buying more through a process called "staircasing".

Shared ownership mortgages are available to first-time buyers and home movers. There are usually income restrictions and buyers will need to have a deposit of at least 5% of the share they are purchasing.

Shared ownership mortgages can be a good option for those who are struggling to save up for a deposit, as the deposit required is usually lower than that for a traditional mortgage. They can also be beneficial for those who may not be able to afford to buy a property outright, allowing them to take the first step onto the property ladder.

However, shared ownership mortgages do come with some downsides. One of the main issues is that buyers will need to pay rent on the share of the property they do not own, which can be expensive and affect your borrowing power. There are also restrictions on the types of properties available under the scheme and there may be additional fees for services such as maintenance.

If you are considering a shared ownership mortgage, it is important to do your research and speak to one of our brokers who specialises in shared ownership mortgages. We will be able to guide you through the process and help you find a suitable deal for your circumstances.

In summary, shared ownership mortgages can be a great option for those who are struggling to save up for a deposit or cannot afford to buy a property outright. However, there are some downsides to consider, such as paying rent on the share of the property you do not own. As with any major financial decision, it is important to do your research and seek professional advice before making a commitment.


Approved by The Openwork Partnership on 02/05/2023

9 views0 comments

Recent Posts

See All


bottom of page