Shared ownership mortgages

Shared ownership lets you buy a share of a home and pay subsidised rent on the rest. The mortgage covers only your share, so the deposit is smaller — but the rules are more complex than a standard purchase.

Last checked 13 September 2026. Editor: Kris · editorial standards

Six sections. Each anchored to a first-party source, checked 13 September 2026.

1. How it works

You buy a share of between 10% and 75% of the property from a housing association and pay subsidised rent on the share you don't own. Your mortgage covers only the share you buy. A 10% deposit on a 40% share of a £300,000 home is £12,000 rather than the £30,000 a standard purchase would require. To be eligible you must not own another property, and your household income must generally be under £80,000 (£90,000 in London) (GOV.UK — Shared ownership scheme).

2. Why shared ownership mortgages are different

Only some lenders offer shared ownership mortgages. The leasehold structure, the housing association as landlord, and the restriction on resale (you must usually offer the property back to the housing association first) narrow the lender pool. A broker who regularly arranges shared ownership cases knows which lenders currently work with specific housing associations and at what loan-to-value ratios.

3. Rent and service charge

You pay rent on the housing association's share at a subsidised rate, currently set at no more than 3% of the unsold equity value per year under the 2021 model lease, rising annually by RPI plus 0.5%. Most shared ownership properties are also leasehold, which means a service charge applies. Budget for both; they reduce the income-multiple calculation the lender makes for the mortgage.

4. Staircasing: buying more shares

You can normally buy additional shares from the housing association in tranches (staircasing), until you own 100%. Each staircasing transaction may trigger Stamp Duty Land Tax. Under the 2021 model lease, the initial purchase now triggers SDLT (with first-time buyer relief available if eligible), and staircasing above 80% triggers additional SDLT. Under older leases the rules differ: check with a solicitor before you assume which regime applies to your property (GOV.UK — SDLT and shared ownership).

5. Selling a shared ownership property

If you haven't staircased to 100%, you must usually give the housing association a nomination period (typically 8–12 weeks) to find another eligible shared ownership buyer before you can sell on the open market. This can slow a sale and affects how quickly the proceeds reach you. Some lenders factor this into their assessment of the property as security.

6. What to ask a broker

Which lenders on your panel work with this housing association specifically?
Does the lender need a copy of the lease, and how long does their review take?
How does the rent and service charge affect the affordability calculation?
If I want to staircase in two years, will the mortgage allow overpayments or early repayment?

At the first meeting the broker must confirm the range of lenders it accesses and any fee it charges (MCOB 4.4A.1R and 4.4A.8R). See also the Financial Services Register.

Brokers whose website mentions shared ownership

124 firms in our directory mention shared ownership on their own website. That's what they say about themselves, not an assessment by us, so check that a firm handles your situation and look it up on the FCA Register before taking advice.

Peterborough

Clerkenwell

Cardiff

Leeds

Salisbury

Ashford

Brackley

Brentford

Croydon

Horsham

Mayfair

Northampton

Norwich

Sittingbourne

Wellingborough

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General information, not advice. Mortgage Brokers List is a directory and a set of free tools. Only an FCA-authorised adviser can recommend a mortgage for your circumstances. See our editorial standards.