Shared Equity: Eligibility and prioritisation

What is the Shared Equity eligibility criteria?

Who can apply for Shared Equity?

Shared Equity is a home-buying option designed to support people who may struggle to purchase a home outright. By combining a smaller deposit with a standard mortgage and an equity loan, buyers can access the property market with lower upfront costs.

Government-backed Shared Equity is not currently available, but some developers and housing providers offer their own schemes on specific developments. Terms and conditions can vary from provider to provider, so it’s important to check any eligibility or prioritisation criteria carefully if you’re interested in a specific mortgage product or housing development.

Am I eligible for Shared Equity?

Eligibility can vary depending on the developer or lender, but typically you must meeting the following criteria:

• Age requirement: Applicants must be 18 years or older.
• Homebuyer status: Generally speaking, you’ll need to be a first time buyer. However, some schemes do also allow home movers who are selling their home or have owned another property in the past, but you cannot currently own another home.
• Financial standing: You must be able to demonstrate that you have a good credit history, and are able to afford the mortgage repayments.
• Available deposit: You must be able to put down a deposit on the home you’re buying. This can be as low as 5% to 10%, though some homes or development may require more.

What are the allocation and prioritisation rules for Shared Equity housing?

Unlike government-backed housing initiatives, Shared Equity schemes don’t usually follow strict allocation or prioritisation rules.

When the Help to Buy: Equity Loan was running, that prioritised first time buyers, with income checks to make sure applicants could afford the mortgage and loan repayments. However, there are currently no government equity schemes available, meaning these are mainly offered by private developers and mortgage lenders. In these cases, eligibility and priority are set by the organisation offering the scheme – not by national rules. This means:

• Priority may go to first time buyers, but some schemes also accept home movers.
• Local connection rules (such as living or working in a particular area) are less common than in government housing schemes but may apply if the scheme is run in partnership with a local authority.
• Income caps are not always fixed, but lenders will check affordability to make sure buyers can manage the repayments.

In short, each scheme may be a little different when it comes to Shared Equity prioritisation, so it’s important for buyers to check details with the developer, housing provider, or lender offering the product.

Where can I search for Shared Equity properties?

If you’re interested in Shared Equity and how it could help you get onto the property ladder, you can widen your knowledge about the scheme and explore the costs and affordability involved here on Share to Buy. Ready to start your property search? Use our property portal to discover new-build Shared Equity homes today.