Shared Ownership Mortgage

What is shared ownership and how does it all work?

Basically, you own a share of the property – usually between 25% and 75% – and you pay rent on the part you don’t own. If you buy a 25% share, you would rent the remaining 75% from a local authority or housing association.

The bigger the share you own, obviously, the more your mortgage payment will be, but the lower the rent you pay. It’s usually designed for people who can’t borrow enough to buy 100% of a property, or can’t save up enough deposit.

Over the period of owning the property, many people do something called ‘staircasing’ where they slowly buy a larger portion of the property. After a few years they might buy another 10%, for example, as their affordability increases.

Who is eligible for shared ownership? Who can get a shared ownership mortgage?

Beyond the standard mortgage requirements, it’s all based on affordability. Can we borrow what you need based on your income and expenditure? There are also standard credit checks with the lender.

Shared ownership is becoming more popular, and lenders are increasingly getting into the shared ownership space. There are now lots of options around different credit points and levels of adverse credit.

These products are more geared towards first-time buyers, generally, and for people earning less than £80,000 to £90,000. Shared ownership is designed for people on lower to medium incomes who don’t own a home – and especially people who have been renting.

But most people are eligible for a shared ownership property – you’re not often going to be turned down.

Which lenders offer shared ownership mortgages at the time of recording in January 2026?

Leeds Building Society have historically been a big player in the shared ownership space. Nationwide is another big one. Halifax are really making strides to improve in this area, as well.

The hardest thing about buying a property is saving up the deposit, and shared ownership works really well if you have a smaller amount saved. It has a big impact on what you’re going to pay back per month and the interest rate you’ll get.

It’s always positive when lenders get into new spaces, because they price against each other and design better deals to tempt customers – so it’s all good news.

Which properties are available for shared ownership?

A large range of properties are available via shared ownership schemes. You could get new build flats or houses, and also older properties.

They’re usually owned by housing associations and Homes England approved providers. There are databases you can scroll through to see properties in different areas. Most people’s tastes are covered.

How much deposit do I need for a shared ownership mortgage?

The rules are similar – basically, you need a minimum of 5%, depending on the property.

It can be slightly different with new build properties, as new build flats sometimes need a slightly larger deposit. But with 5%, you’re in a good position.

When I say 5% deposit, that’s 5% of the share you want to buy. On a £400,000 house, the standard 5% deposit would be £20,000. If you buy a 25% share, you just need £5,000.

The smaller the deposit you put down, the smaller your potential share and the larger the share you don’t own. That may increase the rent to the local authority. It’s always worth considering that and running through the calculations with someone like me.

Will my shared ownership property be freehold or leasehold?

It’s usually leasehold. Obviously, there is rent payable on the portion of the property you don’t own. For flats there may be ground rent and service charges. Potentially there can be some service charges even on houses, depending on the setup, the local authority and the area.

Before you make an offer on a property, you can send me a screenshot of the listing and I will talk you through exactly what’s involved and anything to be aware of.

Can I buy a bigger share of my home at a later date? Can I ever fully own a shared ownership home?

Yes – and increasing your share is called ‘staircasing’, where you buy a bigger share of the property. Even when you initially buy the property, this is always something I would talk through with you.

The goal is to buy slightly larger increments of the property every few years. You don’t have to do this – there’s no obligation to buy a bigger share and some people are happy to leave it as is. That’s absolutely fine.

But a lot of people do want to buy a bigger share every couple of years. It’s usually done in 5% increments. With any additional borrowing, a valuation, potential legal fees and lender approval apply each time. But these are standard checks and usually things go through smoothly.

You can absolutely step up your share to 100%, and at this point your rent stops. Potentially some houses, if they’re on a leasehold basis, will convert to freehold – or you can buy the freehold. A flat will remain on leasehold, but you pay no rent on the portion you don’t own.