Shared-ownership mortgages are used for part buy, part rent schemes whereby you part own your property in conjunction with a co-owner, typically a Housing Association.

These mortgages are very popular with First Time Buyers as the initial deposits are much smaller than those for straight forward residential purchases and, in certain cases, some lenders allow a 100% funding of your share. Shares of the property can be as low as 25% or as high as 75% at the outset of purchasing.

In most cases you can buy further shares of the property, known as ‘staircasing’, until you own the whole property. In some areas of the country you may not be able to buy the whole property and possibly restricted to 80% ownership. It is always important you check this when reading the lease.

Shared Ownership Mortgages

To find out if you qualify for shared ownership you will need to contact a Housing Association in your area, the details of which can be found at Priority is usually given to people on local authority or housing association lists or for ‘key workers’ such as people in the armed forces, nurses, firemen etc but don’t let this put you off applying if you don’t fit into any of these categories.

When looking to purchase a shared ownership property the lease between you and the Housing Association will set out your rights and responsibilities as a shared owner. Although you do not own the property fully you will still be responsible for the cost of repair and maintenance to your home but possibly restricted on any structural or home improvement changes. You solicitor will be able to go through and help you understand the terms of the contract.

The following are some of the main advantages and disadvantages of purchasing a shared ownership property as a first time buyer:


  • A way of getting onto the property ladder which may otherwise have been out of your reach
  • Shared ownership properties are typically new or refurbished
  • Stamp Duty may be waivered in certain areas of the country
  • If you are classed as a ‘key worker’ then you will most likely be considered a priority


  • Eligibility can be quite limited to certain local authority lists or ‘key workers’
  • Waiting lists can be in excess of 1 year
  • Limited choice of property types and/or locations
  • Permission may have to be sought for home improvements
  • You may not be able to buy the property outright in certain areas of the country

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The overall cost for comparison is 3.7% APR

The actual rate available depends upon your circumstances.

Ask for a personalised illustration. APR variable and based on a typical case