Shared Ownership Mortgage Lenders

When buying a Shared Ownership home, you will buy an initial share (usually 25%) of the value of the home and pay a subsidised rent on the remaining amount to a housing provider like Peabody. You can buy more shared in the future which is a process known as 'Staircasing'.

With the share you purchase, you will need to obtain a mortgage which will require a deposit (usually 10% of the share value) and have monthly mortgage payments for the length of the mortgage term. 

By buying through Shared Ownership, you will usually need a much smaller deposit than buying on the open market, making it a more affordable way of getting onto the property ladder.

There are two main types of Shared Ownership mortgages;

Fixed-rate mortgage –The most common type of mortgage, interest you pay stays the same at an agreed fixed-rate period usually from 2 - 10 years. The benefit of this type of mortgage is that you will know exactly how much mortgage payments will be for the duration of the fixed-rate period. 

Variable rate – The interest rate that you pay is decided by the mortgage lender and can go up or down depending on whether the Bank of England base rate (tracker) or the lender’s standard variable rate (SVR) changes. 

Want help understanding your personal finances and whether you can afford to buy a home through Shared Ownership?

To help, we have created a Shared Ownership Affordability Calculator to help you quickly assess what you can afford before diving into the home-purchasing journey.

Our calculator is designed to give you a clear picture of what you can realistically afford in today's housing market.

*The Shared Ownership affordability calculator should be used for guidance only and you should speak to an Independent Mortgage Advisor for more details about costs of buying with Shared Ownership.