Shared Ownership Mortgages Explained

This guide provides general information and is not a substitute for personalised mortgage, tax or legal advice.

Written and reviewed by the Highhouse Money mortgage team · Last reviewed: 25 August 2026

Shared ownership is one of several schemes designed to help people onto the property ladder when buying outright is out of reach. In simple terms, you buy a share of a property — funded by a mortgage and a deposit on that share — and pay rent to a housing association on the portion you do not own.

It is not the right fit for everyone, and it comes with its own rules, costs and lender considerations that differ from a standard residential purchase. This guide explains how it works, what to check before committing, and where specialist advice tends to add the most value.

Before committing to a shared ownership purchase, check:

What share of the property you would be buying, and the price of that share
How the rent on the remaining share is calculated and whether it can increase
Whether service charges or ground rent apply, and how much they cost
The staircasing terms — minimum increments, valuation requirements, and any costs involved
Which lenders are active in shared ownership and what their criteria require
The lease terms around reselling your share, including any nomination period
Your total monthly outgoing: mortgage payment plus rent plus any service charge
Your eligibility for the specific scheme and property

How shared ownership works

Under a shared ownership scheme, typically run by a housing association, you buy a share of a property — often somewhere between 10% and 75%, though the exact range depends on the scheme and provider — using a mortgage and deposit for that share. You then pay rent to the housing association on the share you do not own.

This structure can reduce the deposit and mortgage needed compared with buying the whole property outright, which is the main reason people consider it. It does mean, however, that you are committing to two separate ongoing payments — mortgage and rent — rather than one.

Getting a mortgage for a shared ownership purchase

A shared ownership mortgage works in a similar way to a standard mortgage in that you borrow to fund your share of the purchase price, secured against the property, and repay it over an agreed term. However, not all lenders offer mortgages for shared ownership, and those that do may set specific criteria — for example, a minimum share size or restrictions on certain lease terms.

Affordability assessments will typically take into account both your mortgage payment and the ongoing rent, since together they represent your full housing cost. Being clear about both figures before applying helps avoid surprises.

Rent on the unowned share

The rent charged on the share you do not own is set by the housing association, often calculated as a percentage of the value of that unowned share. This rent is separate from your mortgage payment and is paid to the housing association rather than the lender.

Ask specifically how and when rent can change over the years you own the property, as terms vary between schemes and providers.

Staircasing: buying more of your home over time

Staircasing allows you to buy additional shares in the property over time, potentially up to full ownership, subject to the terms of your lease. Each time you staircase, the price of the additional share is usually based on a new valuation of the property at that time — not the price you originally paid — so the cost of staircasing can rise or fall with the property market.

Staircasing purchases often involve similar costs to a mortgage application — valuation fees and legal costs — so it is worth budgeting for these each time you plan to buy a further share.

Other costs to factor in

Cost	Paid to	Notes
Mortgage payment	Your lender	Covers your share of the purchase price
Rent	Housing association	Charged on the share you don't own
Service charge	Housing association / managing agent	Common for flats and some houses
Ground rent	Freeholder, where applicable	Check whether this applies to your lease
Buildings insurance	Insurer	Often arranged via the housing association for the whole building

Add these together to understand your full monthly housing cost, not just the mortgage payment.

Selling a shared ownership property

Selling is possible but is governed by the terms of your lease, which commonly give the housing association a period of time (often called a nomination period) to try to find a buyer for your share before you can market it independently. The lease will set out the specific process, so it is worth understanding this before you buy, not just when you come to sell.

Your home may be repossessed if you do not keep up repayments on your mortgage, and falling behind on rent to the housing association is a separate but equally serious risk.

What lenders may assess

Affordability considering both the mortgage payment and the ongoing rent on the unowned share
The share size being purchased and whether it meets the lender's minimum requirements
The specific lease terms, including staircasing provisions and any restrictions
The property type and condition, confirmed by valuation
Standard factors: income, credit history, deposit and employment status

Every lender sets its own criteria, which change regularly. The points above are common themes, not a guarantee of how any individual lender will treat an application.

Frequently asked questions

What is shared ownership?

Shared ownership is a scheme, usually run by a housing association, that lets you buy a share of a property — often between 10% and 75%, though this varies by scheme and provider — while paying rent on the remaining share you don't own. You take out a mortgage to fund your share of the purchase price.

Who is shared ownership aimed at?

It is typically aimed at people who cannot afford to buy a home outright on the open market, including many first-time buyers, though eligibility criteria vary by scheme, provider and location. Check the specific eligibility requirements for the property and scheme you're interested in.

How is the rent on the unowned share calculated?

The housing association sets rent on the share you do not own, often as a percentage of that share's value, and this rent is separate from and in addition to your mortgage payment. Ask the housing association exactly how the rent is calculated and how it may change over time.

What is staircasing?

Staircasing is the process of buying additional shares in the property over time, up to and sometimes including full ownership, depending on the terms of the lease. Each staircasing purchase typically requires a new valuation, since the price of additional shares is usually based on the property's current market value, not the original price.

Do all lenders offer shared ownership mortgages?

No — not every lender offers mortgages for shared ownership properties, and those that do may have specific criteria around minimum share size, property type or the terms of the lease. This is one reason shared ownership buyers often benefit from advice covering the lenders that are active in this area.

Can I sell a shared ownership property?

Yes, subject to the terms of your lease, which often give the housing association a period to try to find a buyer for your share (sometimes called 'nomination rights') before you can market it independently. The lease sets out the specific process and any conditions that apply.

Are there additional costs beyond rent and mortgage payments?

Often yes — service charges and, in some cases, ground rent may apply, particularly for leasehold flats, alongside buildings insurance and standard costs like legal fees. Ask for a full breakdown before committing so you can budget for the total monthly outgoing, not just the mortgage payment.

What happens if I fall behind on rent or mortgage payments?

Falling behind on either the rent to the housing association or the mortgage to your lender is serious and can ultimately put your home at risk. Speak to your housing association and lender as early as possible if you are struggling, as options may be available before matters become severe.

Sources and further reading

Where figures or rules can change, the position described is correct at the time of writing (25 August 2026) — always check the linked authoritative source for the latest position.

Residential mortgages

Whole-of-market advice, including lenders active in shared ownership.

First-time buyer mortgage checklist

Preparing to buy your first home, shared ownership or otherwise.

Mortgage costs and fees explained

Understand the fees involved alongside rent and service charges.

How to choose a mortgage broker

Find an advisor experienced with shared ownership lenders.

Ask about shared ownership mortgages

Talk through your eligibility and the lenders that could help.

Talk it through with an advisor

Every case is different. A short, no-obligation conversation with a whole-of-market advisor is often the fastest way to understand your options. Call 0345 512 0077 or send us a message.

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