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What is a shared ownership mortgage?

A shared ownership mortgage is a loan used to purchase a percentage of a property (usually between 10% and 75%) through the government’s "part rent, part buy" scheme. While the underlying mechanics of the loan are the same as a standard residential mortgage, you are only borrowing for the share you own, rather than the full market value.

Key features of shared ownership mortgages

Lower Deposits: Because you only buy a portion of the home, your deposit is based on the value of that share, making it significantly more affordable for first-time buyers.
Mortgage Rates: You can choose between fixed-rate and variable-rate products. However, shared ownership mortgage rates may differ slightly from standard products because only specific lenders offer them.
Eligibility: These mortgages are designed for those with lower incomes or smaller savings who cannot afford a full market-value mortgage.
Monthly Costs: You will pay your mortgage on the share you own and a subsidized rent to a housing association on the remaining share.

How do shared ownership mortgages work?

Shared ownership allows you to enter the property market by purchasing a stake in a home while paying rent on the remainder. Because you are only financing a portion of the property, your shared ownership mortgage and deposit requirements are significantly lower than a traditional purchase.

When applying for a shared ownership mortgage, your deposit is calculated based on the share you are buying, not the full market value.

Share size: Typically between 10% and 75%.
Minimum deposit: Usually 5% to 10% of your chosen share.
The loan: You take out a mortgage to cover the remaining cost of your share.

For example, if you're purchasing a 50% share of a property valued at £200,000:

Component	Calculation	Total amount
Property market value	Full value of the home	£200,000
Your share (50%)	£200,000 x 0.50	£100,000
Cash deposit (5%)	5% of your 100,000 share	£5,000
Your share (50%)	£100,000 - £5,000 deposit	£95,000

You pay a subsidized rent to the housing association on the share you don't own. This is typically capped at 3% of the unsold value per year. You will also be responsible for service charges to cover communal maintenance and building insurance.

Your shared ownership mortgage functions like a traditional loan, usually repaid over a 25–30 year term. While you start by owning a portion, the scheme offers the flexibility to increase your equity:

Staircasing: You can buy additional shares in your home as your finances allow.
Full Ownership: In most cases, you can eventually staircase to 100% ownership, eliminating rent payments entirely and owning the property outright.

What our expert says

When looking for shared ownership mortgage rates, keep in mind that lenders calculate affordability differently than a standard home loan. They will look at your 'total housing cost,' which includes your mortgage payment, the subsidized rent, and service charges. It’s often worth speaking to a broker, like Mojo Mortgages, who understands which lenders are most generous with these calculations.

Ashlyn Trojnacki Mortgage Expert

What’s the eligibility for shared ownership?

To qualify for shared ownership in England, you’ll usually need to:

Be a first-time buyer, or someone who used to own a home but can’t afford to buy one now
Have a household income of £80,000 a year or less (or £90,000 or less in London)
Show that you can afford the costs of home ownership, including the mortgage, rent, and service charges
Have a good payment history (some housing providers may not accept you if you have rent or mortgage arrears)

Each housing association or regional scheme may add extra requirements, so it’s worth checking the rules where you plan to buy

What are the costs involved in shared ownership?

All of the costs involved with taking out a standard residential mortgage apply, but are less expensive due to the smaller loan size. This includes:

Arrangement fees
Legal fees
Valuation fees
Stamp duty - where applicable*

*If you're a first-time buyer in England and Northern Ireland, you only pay stamp duty if your home is valued at £300,000 or more. If you're not a first-time buyer, you pay stamp duty on any property worth more than £125,000.

Where stamp duty is due, you can choose to make a one-off payment for the whole value of the property when you buy. You could also make a small payment when you buy and not pay any more until you own 80% or more.

How do I apply for the shared ownership scheme?

You need to register with your regional shared ownership contact depending on where you live.

Use the links below to head to your regional shared ownership website.

Once you know you're eligible you need to find a property that belongs to the scheme. These can be found on the individual scheme pages or on local council or property listing sites.

Mojo's customer says:

“I had a great experience working with Mojo mortgage broker. Lewis Kinsella were professional, knowledgeable, and always available to answer my questions. He took the time to understand my situation and found a deal that suited my needs perfectly. The whole process felt smooth and stress-free thanks to their guidance. I would definitely recommend their services to anyone looking for reliable mortgage advice.”

Hossein - Mojo Mortgages customer (April 2026)

“Mojo were great! Really helpful and easy to use. Jade Kelly and Jo Rutland were particularly lovely!”

Ella - Mojo Mortgages customer (September 2025)

Mojo is rated

Mojo mortgages have a 4.8 rating based on 9220 reviews
as of 09/04/2026

Shared-ownership mortgages FAQ

Can I buy a bigger share of my home at a later date?

Yes, usually you can buy as much as you want to - up to 100%. This is known as staircasing and you can increase ownership by as little as 1% at a time.

Some lenders limit the amount you can buy, for example, the over 55’s shared ownership scheme only allows you to buy 75% of the property. Always make sure you understand any ownership limits before you select a home.

Can I get a shared ownership remortgage?

Yes, but only from those lenders that also offer shared ownership mortgages - not all lenders offer remortgages to shared ownership scheme customers.

Can I make home improvements on a shared ownership mortgage?

Yes, you can, but there may be limits to what you can do - which vary from one housing association to the next.

Most allow redecoration and minor changes like a new bathroom suite. If you want to add to or change the property’s structure, you’ll need permission from your housing association.

What happens if the value of my house changes?

If you want to buy more shares in your home and the value has gone up, you’ll need to buy them at the higher cost. Likewise, if the property value falls, it could be a good time to buy a bigger share in your home more cheaply.

Can I sell my shared ownership home?

Yes, but most housing associations have a clause that offers them first refusal. This means you can’t advertise on the open market until they’ve had an opportunity to buy it back.

If you don’t yet own 100% of the property, you can only sell it via the housing association. Also you’ll only be entitled to profit that matches the percentage of your ownership.

So if you own 50% and the sale brings in a profit of £20,000, only £10,000 of that is yours. The other 50% belongs to the housing association.

Reviewed by Ashlyn Trojnacki Mortgage Expert Updated on 09 April 2026

YOU SHOULD THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME/PROPERTY. YOUR HOME/PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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