HOLD: What is it and how does it work?

Specialist mortgages for people with disabilities: Shared Ownership and HOLD

If you have a disability and rely on benefits for your income, it may still be possible for you to secure a specialist mortgage and part-buy a home of your own, either from a Shared Ownership development (properties built specifically for sale on a Shared Ownership basis) or from the open market. This second option uses a scheme known as HOLD (Home Ownership for people with Long-term Disabilities). In both cases, applicants can purchase a share (typically between 25% and 75%) of a home using a specialist mortgage provider such as MySafeHome.

HOLD at a glance

Here’s a quick snapshot of the HOLD scheme with more detailed information available below.

• What is HOLD?: A government-backed scheme that helps people with long-term disabilities buy a home from the open market.
• Who can use HOLD?: People with long-term disabilities who need support to buy a home.
• How does it work?: You buy a share of a home (usually 25%–75%) and pay rent on the rest to a housing association.
• Where can I buy a home?: Where existing Shared Ownership homes aren’t available, you can choose a home on the open market with approval from a housing association.
• Do I need a mortgage?: Yes, a special interest-only mortgage. The government can help with the monthly interest payments through an SMI (Support for Mortgage Interest) loan.

What is HOLD?

Home Ownership for people with Long-term disabilities (HOLD) is a government-backed scheme designed to help individuals with disabilities purchase a home. HOLD can make homeownership considerably more accessible by easing the financial strain while accommodating unique circumstances, providing aspiring buyers with disabilities an opportunity to have a place to call their own.

How does the HOLD scheme work?

HOLD operates similarly to Shared Ownership, allowing buyers to purchase a percentage share of a home while paying subsidised rent on the remaining portion owned by a housing association. If eligible, the rent owed could be covered by the individual’s housing benefit.

Unlike Shared Ownership, HOLD offers greater flexibility by allowing you and your loved ones to select a suitable property from the open market when appropriate new-build Shared Ownership homes are unavailable – although this is at the discretion of the housing association. This can make it easier to buy a home near your family, maintaining a close support system while also providing space for independence.

Under this scheme, you/the applicant would purchase a home in partnership with a housing association, which would use grant funding from the Homes and Communities Agency (HCA) for its share of the purchase, helping to keep the monthly rental costs low.

In line with Homes England’s Capital Funding Guide, aspiring buyers who wish to use HOLD should, in the first instance, look for a property available through Shared Ownership before going down the route of buying on the open market

Specialist mortgages and SMI

To buy a home through the HOLD scheme or Shared Ownership, you/the applicant will need to take out a specialist interest-only mortgage to pay for the share of the property you own. The monthly interest payments are covered by a separate loan called the Support for Mortgage Interest (SMI) loan.

If you/the applicant choose to sell the home, the money from the sale is used to repay the mortgage first, then the SMI loan. If there isn’t enough money to cover everything, any remaining SMI loan balance is written off, meaning the borrower does not need to pay it back. Learn more about SMI and the costs associated with purchasing a home through HOLD or Shared Ownership here.

How can I find a home?

If you or your loved one are looking for a home to purchase through HOLD or Shared Ownership, you can explore a wide range of properties on our portal. You can also learn more about the eligibility criteria and costs of buying a Shared Ownership or HOLD house or apartment on our website.