Shared ownership mortgages

What is a Shared Ownership Mortgage?

A Shared Ownership mortgage is a part-buy, part-rent government-backed scheme designed to help first-time buyers and those with limited deposits get onto the property ladder. It offers a more affordable way to purchase a home, particularly in areas where buying outright may be financially out of reach.

With Shared Ownership, you typically purchase a share of a property—usually between 25% and 75%—from a housing association or registered housebuilder. You take out a mortgage to cover the portion you’re buying and pay a reduced rent on the remainder of the property, which is still owned by the housing provider.

How Does Shared Ownership Work?

  • You buy a share of a new-build or resale home through a housing association.

  • You pay a mortgage on your share and subsidised rent on the remaining share.

  • A smaller deposit is usually required, since it’s based on the share you’re purchasing, not the full market value.

  • Over time, you can increase your ownership through a process called “staircasing,” where you buy additional shares in the property. Eventually, you may own 100% of the home.

Who Is Shared Ownership For?

Shared Ownership is ideal for:

  • First-time buyers

  • People returning to the property market after a relationship breakdown

  • Existing shared ownership tenants looking to move or buy more

  • Households earning less than £80,000 per year (or £90,000 in London)

It’s a popular choice for those who can afford monthly payments but struggle to save for a large deposit.

Benefits of a Shared Ownership Mortgage

✅ Lower Deposit Requirements – Since you’re buying a share, your deposit is much lower than if you were buying outright.
✅ Step-by-Step Ownership – Staircasing allows you to increase your share over time, when you’re financially ready.
✅ Access to Better Homes – It can give you access to homes in locations or price brackets that might otherwise be unaffordable.
✅ Security – Unlike private renting, shared ownership offers long-term stability with the option to fully own your home in the future.

Things to Consider

  • You’ll still need to budget for rent, mortgage payments, and service charges.

  • The property is usually leasehold, not freehold.

  • There may be restrictions on selling the property until you’ve staircased fully.

  • Staircasing costs (e.g., legal fees, valuation) should be factored into your long-term financial planning.

How Bowen Mortgages Can Help

At Bowen Mortgages, we specialise in helping buyers navigate the Shared Ownership process. We work closely with housing associations and lenders who offer competitive products designed for shared ownership purchases.

Our advisors can:

  • Explain your eligibility

  • Help you find a suitable mortgage

  • Guide you through the application process

  • Support you if and when you decide to staircase

📞 Ready to Explore Shared Ownership?

Whether you’re just starting your home-buying journey or already have a property in mind, Bowen Mortgages is here to help you make sense of your options.

Contact us today to speak with a Shared Ownership mortgage specialist.

Requirements for Shared Ownership

To be eligible for the Shared Ownership scheme, you must meet the following criteria:

  1. Income Threshold

    • Your household income must be below £80,000 per year (or £90,000 in London).

  2. Age & Residency

    • You must be 18 years or older.

    • You must be a UK citizen or have the right to remain in the UK.

  3. First-Time Buyer or Specific Needs

    • You must be a first-time buyer, or no longer able to afford a suitable home on the open market.

    • You may also qualify if you’re formally separated, a current shared ownership tenant, or an existing homeowner looking to downsize due to financial constraints.

  4. Good Credit History

    • You need to show a reliable credit record and ability to manage regular payments.

  5. Deposit & Affordability

    • A minimum 5–10% deposit is usually required on the share you’re purchasing.

    • You must pass affordability checks by both the housing provider and the mortgage lender.

📝 Steps to Apply for Shared Ownership

Here is a step-by-step breakdown of the application process:

1. Check Eligibility

  • Visit your local housing provider’s website or the Share to Buy portal.

  • Use an eligibility checker to confirm you qualify for the scheme.

2. Register with a Housing Association

  • Sign up with local housing associations or providers in the area where you want to live.

  • You’ll receive alerts when suitable properties become available.

3. Find a Property

  • Search for Shared Ownership homes in your preferred area (new-builds or resales).

  • Attend open days or viewings.

4. Get a Mortgage Agreement in Principle (AIP)

  • Speak with a mortgage advisor (like Bowen Mortgages) to get an AIP—this shows how much you can borrow and proves you’re a serious buyer.

5. Apply to the Housing Provider

  • Submit your application for the home, including financial documents.

  • The provider will assess your eligibility and affordability.

6. Reserve the Property

  • If approved, you’ll pay a reservation fee (typically £200–£500) to secure the property.

7. Apply for a Mortgage

  • Submit your full mortgage application with the help of your broker or lender.

  • Ensure you have your pay slips, ID, bank statements, and proof of deposit ready.

8. Legal Work & Contracts

  • Instruct a solicitor to handle the legal side of the transaction.

  • You’ll review and sign contracts for both the lease and mortgage.

9. Exchange & Completion

  • Once everything is approved, you’ll exchange contracts and set a completion date.

  • On completion day, you officially become a homeowner under the Shared Ownership scheme.


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