Shared Ownership Mortgages

How Shared Ownership Mortgages Work

With a shared ownership mortgage, you take out a mortgage on the share you’re buying, rather than the full property value. Alongside your mortgage repayments, you’ll pay a reduced rent on the remaining share, as well as any service charges for maintenance and upkeep.

You’ll typically need a deposit of around 5%–10% of the share you’re purchasing, making it a more accessible option compared to buying outright. Over time, you may also have the option to increase your ownership share, depending on the scheme. 

To understand what happens next, including affordability checks, and timelines, read our full guide on how the mortgage application process works. 

Eligibility for Shared Ownership Mortgages

To qualify for a shared ownership mortgage in the UK, you’ll need to meet the following criteria:

• Be at least 18 years old
• Have a household income of £80,000 or less (£90,000 in London)
• Be unable to afford a suitable home on the open market
• Have a good credit history and be able to secure a mortgage

You’ll also usually need to be a first-time buyer, a previous homeowner who can no longer afford to buy outright, or an existing shared ownership homeowner looking to move house. 

How to Apply for a Shared Ownership Mortgage

Getting a shared ownership mortgage involves a few key steps. You’ll first need to confirm your eligibility and be approved for the scheme through a housing association. From there, you can apply for a mortgage on your chosen share of the property. For more insight, read our guide: What Mortgage Can I Get? 

As not all lenders offer shared ownership mortgages, working with a broker can help you access suitable options more easily. At Bell Financial, we guide you through the process from your initial enquiry through to securing a mortgage that fits your circumstances.

Pros and Cons of Shared Ownership

A mortgage for shared ownership can be a good way to get on the property ladder, but it’s not right for everyone. Here are a few key things to think about.

Pros

• You don’t have to buy the full property upfront, which makes it more accessible
• Deposits are usually lower, as they’re based on the share you’re buying
• Monthly costs can be more manageable compared to buying outright
• You can buy more of the property over time if your situation improves
• It can help you get onto the property ladder sooner

Cons

• You’ll be paying both a mortgage and rent at the same time
• There can be extra costs, like service charges and maintenance fees
• Selling can take longer, as the housing association may be involved
• Fewer lenders offer shared ownership mortgages
• There may be some restrictions depending on the property

Why Choose Bell Financial for Your Shared Ownership Mortgage

At Bell Financial, you’ll work with a hands-on team focused on making your shared ownership mortgage as straightforward as possible.

From your first enquiry through to completion, you’ll receive tailored support based on your circumstances, including guidance on securing competitive mortgage rates.

As independent, CeMAP-qualified advisers, we search a wide range of lenders, including high street banks and specialist providers not available directly. This gives you access to more suitable options.

You’ll have a dedicated point of contact throughout, with flexible appointments available in the evenings and weekends, so you’re always kept informed.

We also manage the full application process for you, from paperwork to lender communication, helping keep everything smooth and stress-free.

Your journey starts with a free, no-obligation consultation, giving you clear advice and recommendations you can rely on.

Get in touch today to find out more.