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