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What is a shared ownership mortgage?

It’s any mortgage that can be used to buy a home using the government’s shared ownership scheme. The mortgage doesn’t differ - you can still choose whether to have a fixed or variable rate, for example - but not all lenders offer them.

Despite this, you may see mortgages advertised as ‘shared ownership mortgages’ - or sometimes ‘part rent, part buy mortgages’. This is simply lenders making it clear that they accept applications from users of the shared ownership scheme.

It's easier to qualify for a mortgage when you only buy a share of a home because you'll borrow less and need a smaller deposit. This can be useful to those with a lower income.

How do shared ownership mortgages work?

With shared ownership, you’ll still need a mortgage and a deposit, but only for the share of the home you’re buying. That makes it more affordable than buying outright. Your deposit is usually at least 5% of your share, not the full property price.

You’ll normally start by buying between 25% and 75% of the home, although in some cases you can begin with as little as 10%.

For example, if a property costs £200,000 and you buy a 50% share (£100,000):

You’d need a deposit of at least £5,000 (5% of your share)
You’d take out a mortgage for the rest – £95,000 in this case

The housing association owns the other half, so you’ll pay them rent on that share. Rent is usually capped at around 3% of the unsold portion each year, and you may also need to cover service charges for things like communal areas or building maintenance.

Your mortgage works like any other, typically repaid over 25 - 30 years. At the end of the term, you’ll own the same share you started with. But the scheme is flexible: over time, you can buy more shares in your home when you can afford to, a process called staircasing. In many cases, you can eventually buy the property outright and stop paying rent altogether.

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

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.

Which lenders offer shared ownership mortgages?

Not all of them, but a good amount of lenders are available across the market, for example:

Leeds Building Society
Skipton Building Society
Newbury Building Society
Nationwide
Santander
Barclays
Halifax
Lloyds
TSB
Virgin Money

Because products change often, always check with the lender directly or via a mortgage broker to see whether they still offer a shared ownership mortgage that suits your situation. Checked as of September 2025.

What are the advantages and disadvantages of shared ownership?

You don't need to borrow as much, so the deposit and affordability criteria are easier to meet
It's often cheaper than private rental - even though you’re paying rent and a mortgage
You can usually buy the full property in stages when you can afford to
If the value of your home increases, the value of your share increases too

Not all lenders offer a mortgage for this scheme, so there are fewer options than buying a home the traditional way
You can’t buy any property you want and are bound to those available in the scheme
Properties are leasehold, and usually include service charges as well as rent
Not all housing associations allow you to buy 100% of the property - always check the terms
You may need to offer the property back to the housing association first if you want to sell. This can slow down the home-selling process

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*

*From 1 April 2025 If you're a first-time buyer, 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.

What our expert says

If you're on a low income or struggling to save a large enough deposit to buy a home, shared ownership could be a great option. A broker can help you understand your options and decide whether this is the right path for you.

Yousif Khaleel Mortgage Expert

Mojo's customer says:

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

Ella - Mojo Mortgages customer (September 2025)

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Mojo mortgages have a 4.8 rating based on 7694 reviews
as of 19/09/2025

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.

Learn about different mortgage types

Mortgages

Are a type of loan used to buy a property. The mortgage is secured against the value of the property. <style> </style>

First-time buyer

Are designed to help give you that first step on the housing ladder. <style> </style>

95% mortgage

Is when you borrow 95% of a property's price. You put down a deposit of 5%, and borrow the rest from a lender.

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Page last reviewed: 19 September 2025

Reviewed by: Yousif Khaleel

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