What Is a Shared Ownership Mortgage?

A shared ownership mortgage lets you buy a share of a property (typically 25-75%) while paying rent on the remainder. You need a mortgage for your share only, making homeownership more affordable. Most high street lenders offer shared ownership mortgages. You need a 5-10% deposit of your share value (not the full property price) and must have household income under £80,000 (£90,000 in London).

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Learn more about 5% deposit mortgages in our detailed guide.

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How much can I borrow?

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What is a shared ownership mortgage?

A shared ownership mortgage lets you buy a share of a property (usually 25-75%) and pay rent on the rest. You need a mortgage for your share only. Over time, you can buy more shares ('staircasing') until you own the property outright. It's designed to help people who can't afford to buy on the open market.

Which lenders offer shared ownership mortgages?

Many high street lenders offer shared ownership mortgages including Halifax, Nationwide, Barclays, NatWest, Santander, and Leeds Building Society. Some specialist lenders also participate. Not all lenders offer shared ownership products, so working with a broker who knows this market is helpful.

What deposit do I need for shared ownership?

You typically need a 5-10% deposit of your share value, not the full property price. For example, if a property costs £200,000 and you buy a 50% share (£100,000), a 10% deposit would be £10,000. Some lenders accept 5% deposits, making shared ownership very accessible.

Who is eligible for shared ownership?

You must be a first-time buyer (or have owned before but can't afford now), have a household income under £80,000 (£90,000 in London), and be unable to buy on the open market. You must be able to afford the mortgage, rent, and service charges. Priority is often given to local people and key workers.

Can I get shared ownership with bad credit?

It's more difficult but not impossible. You'll need to find a lender who accepts both shared ownership and adverse credit - options are limited. Minor credit issues may be accepted. Serious issues like CCJs or IVAs significantly reduce options. A specialist broker can help identify any available lenders.

Is shared ownership worth it?

It depends on your circumstances. Pros: lower deposit, smaller mortgage, get on the ladder sooner. Cons: pay rent on unowned share, restrictions on changes, can be harder to sell, staircasing costs money. It's worth it if you can't otherwise afford to buy and plan to staircase to full ownership.

Quick Answer

How Do Shared Ownership Mortgages Work?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

You buy a share (25-75%) with a mortgage and pay rent on the rest. Deposit is 5-10% of your share only, making it much more affordable than buying outright.

Shared ownership is a government-backed scheme helping people get on the property ladder. You purchase a share of a new-build or resale shared ownership property, typically between 25% and 75%, and pay subsidised rent (usually 2.75% of the housing association's share) on the remainder. Your mortgage covers only your share, so borrowing requirements are lower. Over time, you can 'staircase' - buying additional shares in 10% increments until you own the property outright. The scheme is available through housing associations and is aimed at first-time buyers and those who previously owned but can't now afford to buy.

Your home may be repossessed if you do not keep up repayments on your mortgage. With shared ownership, you also pay rent - missing rent payments has consequences.

Key Points

1Buy 25-75% share, pay rent on the rest
2Deposit is 5-10% of your share only
3Rent typically 2.75% of housing association's share
4Can staircase to full ownership over time
5Household income must be under £80,000 (£90,000 London)
6Available on new builds and resales

Eligibility Criteria

First-time buyer (or owned before but can't afford now)
Household income under £80,000 (£90,000 in London)
Cannot afford to buy suitable property on open market
Meet lender affordability for mortgage plus rent plus charges
Must be able to get a mortgage (no bankruptcy, etc.)

Typical Timeframe

Shared ownership applications take 8-12 weeks typically, longer than standard purchases due to housing association processes. You'll need to register with local housing associations and may need to attend eligibility interviews. Priority is often given to local residents and key workers.

Next Steps

1Check your eligibility on the gov.uk website
2Register with housing associations in your area
3Get a mortgage agreement in principle
4View available shared ownership properties
5Apply through the housing association

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Property Value	Your Share	Share Value	10% Deposit	Est. Monthly Rent
£200,000	50%	£100,000	£10,000	~£250
£250,000	40%	£100,000	£10,000	~£375
£300,000	25%	£75,000	£7,500	~£562

How Do Shared Ownership Mortgages Work?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

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