This guide explains the basics of the Shared Ownership scheme and how the mortgage element works. We can advise on the mortgage only — we cannot assess whether the scheme itself is suitable for you.
What is Shared Ownership?
Shared Ownership is a government-backed scheme that allows you to buy a percentage of a property — typically between 10% and 75% of its full market value — while paying rent on the remaining share. You take out a mortgage for the portion you are purchasing, and a deposit will be required.
Who is the Shared Ownership scheme for?
Shared Ownership is often used by first-time buyers who cannot afford to purchase a property outright, but it isn’t limited to them. As long as you do not own another property, you may be eligible. Full eligibility criteria can be found on the government website: https://www.gov.uk/shared-ownership-scheme/who-can-apply
How does the Shared Ownership scheme work?
Once you purchase your share, you will make mortgage payments on the portion you own and rental payments on the share you don’t. You should also factor in additional costs such as service charges and management fees. These vary depending on the property and landlord.
What happens in the future?
As a part-owner, you may benefit from any increase in the value of your share over time. Property prices can go up or down, but if your mortgage is on a capital repayment basis, your equity will grow as you make your monthly payments.
The landlord who owns the remaining share can review rent and service charges, which may result in changes to your monthly costs.
You also have the option to buy more shares in the property — a process known as staircasing. As your share increases, the rent you pay decreases. You can staircase all the way to 100% ownership if you wish, although there is no obligation to buy additional shares. Each staircasing transaction will involve fees and legal costs.
What if I want to move home?
You can sell your share of the property. When you decide to move, you will need to contact the landlord, who will outline the process and any requirements.
Shared Ownership won’t be right for everyone, but for some buyers it can be a helpful route onto the property ladder. More information is available at: https://www.gov.uk/shared-ownership-scheme
If you would like advice on the mortgage element of Shared Ownership, we’re here to help. Please note that we can only advise on the mortgage, acceptance onto the scheme itself is a separate process.
To speak with one of our advisers, call us on 01455 63 61 63 or click here to view our availability and book an appointment. https://onerooffinancial.co.uk/contact/
Your home may be repossessed if you do not keep up repayments on your mortgage.
Blog written on 12/02/2026
The information contained within this blog was correct at the time of publication (12/02/2026), and is subject to change.
