Published: 29/01/2019

At a glance

  • Enables you to get your first foot on the property ladder by owning a part of your property.
  • May have attractive deals offered by a partner of the local authority or housing association.
  • Not universally available.

Shared ownership is where you buy a proportion of a property from a local authority or housing association – usually with the assistance of a mortgage – and rent the remaining part.

How do shared ownership mortgages work?

Normally you start off with buying 25% to 50% of the property, increasing to 75% or even 100% (if the housing association allows it) over time. This process, of buying a small amount of your property and then buying another stake later, is sometimes referred to as 'staircasing'.

The combined mortgage payment and rent of a shared ownership property should be less than the mortgage payment you may have faced had you secured a mortgage on the whole property (less your deposit). Therefore, this type of mortgage is suitable for those on lower income and are unable to get onto the housing ladder in the usual way.

Another advantage of shared ownership is that you don't have to provide so much of a deposit, which is why this type of scheme is popular with first-time buyers.


You only need to put up a percentage (normally 10% to 20%) of the stake in the property you are taking. So, if you were taking a 50% stake in a property worth £150,000, for instance, a 10% deposit represents £7,500, as opposed to the £15,000 if you were to buy the property outright with the help of a 90% LTV mortgage.

However, not all mortgage lenders allow shared ownership mortgages. Where they are offered, most lenders will generally let you choose from their full product range, although some may have products specifically for shared ownership.

Lenders offering shared ownership mortgages

  • Barclays Bank
  • Buckinghamshire BS
  • Cambridge BS
  • Cumberland BS
  • Dudley BS
  • Ecology BS
  • First Trust Bank (NI)
  • Furness Building Society
  • Halifax
  • Hanley Economic
  • Holmesdale BS
  • HSBC
  • Ipswich BS
  • Kent Reliance
  • Leeds BS
  • Lloyds Bank
  • Mansfield BS
  • Melton Mowbray BS
  • Nationwide BS
  • Newbury BS
  • Penrith BS
  • Santander
  • Teachers BS
  • Tipton & Coseley BS
  • TSB
  • Ulster Bank
  • Virgin Money

(List correct as of 08.01.2019)

Some of these lenders may have additional criteria and can be quite small building societies. Smaller lenders may restrict their mortgage business to certain postcodes or areas, with others being limited to customers working in certain professions.

Pros and cons of a shared ownership mortgage

  • Shared ownership mortgages give people who may not be able to afford a full mortgage an opportunity to get on the property ladder.
  • Lower deposit needed than for an ordinary mortgage product.
  • Not universally available from all mortgage lenders.
  • Some lenders may have additional criteria which you must meet.
  • Availability may be limited to certain professions and/or areas.

Mortgage calculator

Our mortgage calculator helps you to see how much your mortgage might cost you each month.

Our how much can I borrow calculator gives you a range of how much a lender might consider lending you under a mortgage. This calculation is only an indication only.

Read our How much can I borrow for a mortgage guide to find out more about what can impact your potential sum of borrowing.

Moneyfacts tip

Moneyfacts tip Leanne Macardle

Housing associations or house builders will often have special arrangements with a mortgage lender, giving you access to exclusive shared ownership mortgage deals.

Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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At a glance

  • Enables you to get your first foot on the property ladder by owning a part of your property.
  • May have attractive deals offered by a partner of the local authority or housing association.
  • Not universally available.

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