Getting a shared ownership mortgage

Key takeaways

• Shared ownership lets you buy a percentage of a property with a smaller deposit (typically 5–10% of your share), but you must also budget for rent, service charges and additional fees.

• You can increase your ownership over time through “staircasing,” buying extra shares at current market value and reducing the rent you pay.

• The scheme is aimed at buyers who can’t afford to purchase on the open market, with income caps and affordability checks applying.

• While it can be a useful route onto the property ladder, you’ll still face leasehold restrictions, full maintenance responsibility and potentially slower resale.

What is a shared ownership mortgage?

A shared ownership mortgage is a home loan that lets you buy part of a property and pay rent on the rest.

The idea is to help you get on the property ladder with a smaller deposit. Over time, you may be able to increase the share you own.

Shared ownership is a government-backed scheme where you buy part of a property and pay rent on the rest. Most people purchase 10% to 75% of the property, with a housing association or local authority owning the remainder.

A shared ownership mortgage is a home loan for the part of the property you buy.

Shared ownership mortgages are available to both solo and joint buyers.

Shared ownership mortgages often cost more than standard deals as lenders see this type of property as a higher‑risk purchase.

How much deposit do you need for shared ownership?

Your deposit for a shared ownership mortgage is based on the share you’re buying, not the full property value. Most lenders ask for a 5 to 10% deposit of your share. Some may require more depending on your credit history and income.

Here’s an example. If the property is worth £300,000 and you buy a 40% share, your portion is £120,000. A 10% deposit would be £12,000.

As well as the deposit, you’ll still need money for:

• Legal fees

• Mortgage arrangement and valuation fees

• Moving costs

• Stamp duty

How does staircasing work?

Staircasing means buying additional shares in your home after your initial purchase. You might buy more shares if you get a pay rise or other additional income in the future. Typical features of staircasing include:

• You can often buy in chunks (for example 10% or more at a time).

• The price of each extra share is based on the current market value, not what you originally paid.

• As your ownership increases, the rent you pay usually falls.

• In most cases you can staircase all the way to 100%, at which point you’ll own the property outright and stop paying rent.

• Some older schemes cap staircasing at 80%, but this is less common now.

Who is eligible for shared ownership?

Eligibility rules vary slightly by scheme, but generally you must:

• Have a household income below £80,000 (or £90,000 in London)

• Be a first‑time buyer, former homeowner who can’t afford to buy again, or an existing shared owner looking to move

• Be unable to buy a suitable home on the open market

• Pass affordability checks with both the housing association and the mortgage lender

• Be a key worker or have a local connection (in some cases).

How can I find a shared ownership property?

The Gov.uk website can help you search for shared ownership homes for sale in England. You can:

• find an organisation that sells shared ownership homes in England (excluding London)

• find a shared ownership home in London on the Homes for Londoners website

Housing associations, homebuilders and local councils may also have details of shared ownership schemes on their websites.

Shared ownership homes tend to be new-build properties. Some have been lived in before (these are known as ‘resales’).

Are shared ownership homes always leasehold?

In almost every case shared ownership properties are leasehold.

Because you’re only buying a share of the home, you don’t own the land outright. Instead, you hold a lease from the housing association or developer, and they retain the freehold, even if you staircase to 100%.

Shared owners usually have to pay 100% of service charges and maintenance costs, so these should be factored into affordability calculations.

Houses, as well as flats, sold through shared ownership are usually leasehold.

Shared ownership leases often include rules about:

• Subletting (usually not allowed)

• Pets

• Alterations or renovations

• Running a business from home

• Paying ground rent and service charges

What are the pros and cons of shared ownership?

Pros

• Lower deposit requirements than mainstream mortgages

• A quicker way onto the property ladder for many buyers

• Ability to staircase later on, up to 100% in some cases

• Rent is usually below market rates

Cons

• You pay rent, mortgage, and service charges, which can add up

• Selling can be slower, as the housing association usually has first refusal

• Staircasing costs money each time (valuation, legal fees, admin fees)

• You don’t fully own the property until you own 100%

• Leases can be restrictive concerning what you can do in/to your home

• While you'll only own a share of your home, you'll still be responsible for maintaining the entire property

• You could be evicted if you don’t pay your rent

How much rent will you pay on the remaining share?

Rent is charged on the share you don’t own, typically at around 2.75% of the unsold equity per year.

Example:

• Full value: £300,000

• You own 25% (£75,000)

• Remaining share: 75% (£225,000)

• Annual rent at 2.75% = £6,187.50

• Monthly rent = £515

Rent usually increases each year by RPI + a small percentage (often 0.5%–1%).

Which lenders offer shared ownership mortgages?

Not every mortgage lender offers shared ownership mortgages, but many big names and specialist providers do.

Lenders offering shared ownership mortgages as of February 2026 include:

• Nationwide

• Halifax

• Barclays

• Leeds Building Society

• TSB

• Santander

Availability, minimum deposits and rates vary between lenders. Criteria can be stricter for shared ownership mortgages than for standard purchases. A mortgage broker experienced in shared ownership can help you find the best shared ownership mortgage for your circumstances.

Can you sell a shared ownership property easily?

You can sell a shared ownership property, but the process can take longer than selling a standard home.

Most leases give the housing association a nomination period (often around 4 to 8 weeks) to find a buyer. If they can’t, you can usually market it on the open market.

It’s important to note the following points:

• The property will be valued to set the sale price

• You sell the share you own, unless you staircase to 100% first

• Buyers must typically meet shared ownership eligibility rules

Is shared ownership right for me?

Shared ownership can be a practical route into home ownership if saving a sufficient deposit is an issue. However, it’s important to budget for all the costs involved in the purchase.

These include:

• Mortgage

• Rent

• Service charges

• Future staircasing expenses

Shared ownership can be a valuable stepping stone into homeownership, particularly if saving a large deposit feels out of reach. By allowing you to buy a share of a property and pay rent on the remainder, it lowers the upfront barrier, but it’s important to understand the full financial picture before committing.

Taking the time to review the terms of the lease, check eligibility rules and compare mortgage deals carefully can help you decide whether shared ownership fits your long-term plans.If you’re unsure, speaking to a mortgage broker experienced in shared ownership can help you weigh up your options and find a deal suited to your circumstances.