Shared Ownership Mortgages: How they work and who they are for?

Blog written 24/08/2023 

In this blog we provide some basic information about the shared ownership scheme. We can provide advice on the mortgage element only. We cannot advise on the suitability of the scheme. 

Shared ownership mortgages: What is Shared Ownership?  

Shared Ownership is a housing scheme which allows you to purchase a share of a property (between 10% and 75% of the full market value) and pay rent on the remaining share that you do not own. You can take out a mortgage for the share that you are purchasing. A deposit will be required for this. 

Shared ownership mortgages: Who is this scheme for? 

This scheme is ideal for first-time buyers who cannot afford to purchase the full property, but it is not restricted to them alone. Provided you do not own any other property, you may be eligible. You can check the full eligibility criteria on the website.  

How does the scheme work?  

Once a shared ownership property is purchased, you will pay your mortgage payments on the share that you own, and rental payments on the share that you do not own. There are other costs to consider such as service charges & management fees. How much you pay is unique to each individual person & shared ownership property.   

What happens in the future?  

As a part-owner, you will benefit from the growing value of your share. House price growth is not guaranteed but if you have a mortgage on a capital repayment basis, you will grow your equity by making your monthly mortgage payments. 

The landlord (who owns the remainder of the house) has a right to review the rent which may mean an increase in monthly rental payments over time.  

You have the right to buy more shares in the property. This is known as ‘staircasing’. When your share increases, the amount of rent you pay will decrease. You have the right to purchase 100% of the property. There is also no obligation to purchase any further shares. Fees & legal costs will be payable each time you purchase additional shares. 

What if I want to move house? 

You have the right to sell your share of the property. At the time you are thinking of moving, you can make contact with the landlord who will explain the process. 

This scheme is not for everyone but for some, it is a great way to get onto the property ladder. For more information, please refer to 

If you need our advice on a shared ownership mortgage, please get in touch with us. Please note that we can only advise on the mortgage and not the shared ownership scheme itself. Acceptance for this scheme must be sought separately to getting a mortgage.  

The information contained within this blog was correct at the time of publication (24/08/2023), and is subject to change. 



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