Shared Ownership Mortgages

A shared ownership mortgage could help you get onto the property ladder. Find out how they work here.

What is a shared ownership?

Shared ownership mortgages allow you to buy a share of the property, instead of buying the whole property. You’ll pay a mortgage on your share then pay rent on the rest.

If you’re a first time buyer, saving a big deposit can be tricky. That’s where shared ownership mortgages can help. They’re also known as ‘part buy, part rent’ mortgages and are offered by housing associations.

Who can get a shared ownership mortgage?

Shared ownership mortgages are available to people living permanently in the UK who:

  • Have a household income of £80,000 a year or less (£90,000 a year or less in London)
  • Cannot afford all of the deposit and mortgage payments for a home that meets their needs

One of the following must also apply:

  • Are a first-time buyer
  • Used to own a home but cannot afford to buy one now
  • Forming a new household - for example, after a relationship breakdown
  • Are an existing shared owner, and want to move
  • Own a home and want to move but cannot afford a new home that meets their needs

How do I apply for a shared ownership mortgage?

It’s easy to get started. Just contact your nearest housing association to apply for the shared ownership scheme.

You’ll be asked questions about your:

  • Income
  • Savings
  • Credit history
  • Preferred location

The amount you can borrow will normally depend on your:

  • Income
  • Mortgage cost
  • Rent
  • Service charges
  • Ground rent

The minute you’ve been accepted it’s time to get excited – you can start looking for your new home.

Shared ownership: pros and cons 

Advantages of shared ownership

  • You can buy the part of the home you’re renting out at a later date.
  • Gives you a chance to own your home, even without a big deposit.
  • You can sell your shared ownership at any time, even if you don’t fully own it.

Disadvantages of shared ownership

  • When selling your home, the housing association may not give you full control over who you sell to.
  • As most shared ownership properties are leasehold, you'll likely have to pay ground rent and service charges on your home.
  • If you’ve purchased a flat, you might need to pay maintenance charges for communal areas too.
  • How does shared ownership work when you sell your home?

    It’s worth knowing that the housing association will have the first option to sell your property before you do.

    This is called ‘first refusal’ and means they can find their own buyer if they want to. This is also the case if you don’t own a full share of your property at the end of your tenancy.

    Can you build an extension on a shared ownership house?

    You’d need to get permission to add an extension. You can ask the housing association for this. 

    Can you buy a shared ownership house outright?

    You can buy a bigger percentage of your home at any time. This is called ‘staircasing’.

    You may be able to buy a 10% share of the overall value of your shared ownership home. To buy any bigger percentage than that, you may have to pay extra.

    The amount you’ll have to pay to increase your share depends on how much your home is worth. You can find this out by paying the housing association to carry out a valuation.

The content on this page is for reference and does not constitute financial advice. For impartial financial advice, we recommend government bodies like MoneyHelper.

Calculators and tools

We have a range of mortgage calculators to help you:

  • Find out how much you could borrow from Halifax
  • See how much you could save if you make overpayments on your mortgage
  • Get an idea how a change to the Bank of England Base Rate could affect your monthly payments
Use our calculators and tools

Speak to someone

You can talk to us over the phone or use our mortgage video service from the comfort of your own home.

Contact us