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In association with:
Britannia Building Society
Notting Hill Housing
Shared ownership basics
Just beginning? Find your homebuy agent
If you are right at the beginning of researching shared ownership and have not yet been accepted by a housing association, and you simply want to find out how to get started, your first port of call is to contact your regional homebuy agent. They will explain how to register for shared ownership schemes in your area and should be able to confirm whether you quality for any of those schemes. Use the drop down menus below to find the home buy agent corresponding to your local authority or county.
Please note: if you are buying in Scotland, Wales or Northern Ireland the homebuy agents do not apply and you should contact your local authority directly).
Select your local authority or county
The basic facts about shared ownership
Shared Ownership is sometimes called 'part buy/ part rent'. Namely, you generally buy a percentage share of a property owned by a housing association and then pay rent on the remaining share that you do not own, hence: 'part buy/ part rent'. It is possible to buy a small share initially, such as 25%, and gradually buy the remaining shares in the property in a process known as 'staircasing'. Not all schemes work on this basis and there are a number of variations on the shared ownership theme, such as Open Market home buy (see below), and other ‘shared equity’ schemes where no rent is payable.
Applying for a Shared Ownership mortgage
There are three key points any lender would want to know for a Shared Ownership application, in addition to the usual, that is:
- What share you are looking to buy in the property (e.g. 25%, 40%)
- The size of deposit, if any, you are putting down - it is possible to buy 100% of a share and we have lenders on our panel who will consider this (but the lender will normally require your lease to have a special 'mortgage protection clause'; the housing association would be able to confirm if this was present)
- Finally, the rent you will be paying on the share you do not own, as this will be treated as a commitment to be deducted from your income when working out how much you can borrow.
Different types of shared ownership
One point you may find confusing as you begin your research into shared ownership is that there are a number of different shared ownership schemes under the same umbrella term of affordable housing. These include:
- New build home buy: a new term for what is essentially traditional shared ownership where you part-buy part-rent a property from a housing association and can staircase (i.e. increase your ownership) up to 100%. Download the housing corporation's leaflet to find out more.
- Open market home buy: this is a new scheme from the Government whereby you buy 75% of a property and receive two equity loans of 12.5% from the mortgage lender and Government/homeBuy agent respectively for the remaining 25%. Click here for the housing corporation's information about open market home buy (and see the downloadable leaflets under 'related information').
- Shared equity: the main feature of traditional shared ownership/new build home buy is that you can buy a percentage of the property ranging from 25% to 75% and staircase up to 100% ownership, usually paying rent on the remaining share that you don't own. In contrast, some schemes are offered on the basis of shared equity where the purchased share is usually 60-70% with no rent payable on the remainder, and there are strict rules about when the remaining share can be bought (potentially ruling out staircasing).
- First time buyers' initiative: this is a shared equity scheme that aims to help eligible first time buyers to buy a share in a new home. They must buy at least half of the property, and a Government agency called English Partnerships will retain the rest. Click here for further information from English Partnerships about the First-Time Buyers' Initiative.
Next Steps
If you have already been offered a property by a housing association please contact us through the urgent enquiry facility or submit an agreement in principle application. Use the shared ownership mortgage tools below, or click here to see how much you can borrow on our Shared ownership mortgage calculator, or click here for a Shared ownership mortgage illustration. Alternatively, read our shared ownership house buying guide.
Shared Ownership Mortgage Tools
- Shared Ownership mortgage calculator – see how much you could borrow on a shared ownership mortgage. A basic estimate, ideal for those starting out from scratch.
- Shared Ownership mortgage illustration – you submit brief details for each applicant and a member of our team will reply with an estimate of your mortgage potential and an approximate indication of the monthly cost.
- Shared Ownership mortgage agreement in principle – if you have been offered a property by a housing association you will need to obtain an agreement in principle to prove you can obtain a mortgage, and if you are successful you can then apply in full to purchase the property. The way it works is that you provide your personal information (address history, credit commitments etc) and we respond with detailed illustrations for a choice of mortgage products. If you like one of the products, you can then request a credit check from the lender confirming whether they would agree in principle to lend you that amount, subject to valuation and income verification. There is no charge and it's not binding on your or the lender so even if you pass a credit check you are not obliged to apply to that lender.
General information about shared ownership
- Shared Ownership house buying process – read our guide to buying a property with a shared ownership mortgage.
- Staircasing and Shared Ownership remortgages – if you are looking to staircase (i.e. buy further shares in the property), remortgage your current shared ownership/homebuy deal – or both – we have significant experience in this area. Due to the fact that we are a whole of the market broker we can also arrange an open market mortgage if you are looking to staircase to buy 100% of the property. As always, there is no fee charged.
- Shared Ownership solicitors - click here for information on solicitors with experience of shared ownership mortgages.
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