Head of Content
Mortgage Advisor & Director
What is a shared ownership mortgage?
A shared ownership mortgage is where you buy a share of your home and pay rent on the rest.
With a shared ownership mortgage, you can apply for a lower mortgage amount, which means your deposit will likely be lower too.
If you are looking to apply for a shared ownership mortgage, our team of experts are happy to help. You can get the process started today by completing our simple online form, and one of our advisors will be in touch.
How do shared ownership mortgages work?
You buy a share of a home from a housing association and continue to pay rent on the rest.
- A local Help to Buy agent guides you through the process.
- You can buy between 25% to 75% of the property from the housing association.
- You then arrange a mortgage on your share and pay rent on the remaining percentage share.
- As time goes by, you can increase your share of the property based on the value at the time.
Am I eligible for shared ownership?
To apply for a mortgage under a shared ownership scheme, you must have a combined income not exceeding £80,000, or less than £90,000 if you live in London.
You must also:
- Not own any other property
- Intend to live in the property, and not rent out any part of it
- Have permanent residency rights to live in the UK
What sort of deposit will I need for a shared ownership mortgage?
Generally, you will need between 5-10% of the value of the share you're buying as a deposit for a shared ownership property.
Note that this is not the full purchase price. As an example, if you were looking to buy 50% of a £200,000 home, for a 10% deposit this means you would need £10,000.
How much will I pay in rent under a shared ownership scheme?
The rent element of a shared ownership home depends on the value of the property and your share.
The rent chargeable annually is typically around 3% of the value of the share owned by the housing association. Using our earlier example of a £200,000 home with 50/50 ownership, with would equate to £3,000 annually, or £250/pcm.
How can I learn more?
Our team of experts have helped many people like you to get the best deal possible on their shared ownership mortgage. To get started, complete our simple online form today, and one of our advisors will be in touch to discuss the next steps.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
