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Can’t afford to buy the whole property?

  • The Shared Ownership scheme allows you to part buy and part rent.
  • You could buy 25-75% share and pay as little as 5% deposit on that share.
  • Speak to one of our advisors to check your mortgage options.
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Shared Ownership scheme

A housing association scheme to help home buyers with small deposit

Saving up a large enough deposit can be a struggle when you are already paying rent and can’t count on bank of mum and dad. Shared ownership may be the solution to get your foot on the property ladder.

You typically buy 25-75% share and the remaining share will remain with the housing association.

If you take a mortgage for your own share, then you will have a mortgage to pay for the part you buy and rent for the share that the housing association retains. In addition, you will pay a service charge for maintenance and insurance of the property.

The shared ownership rent and service charge are proportionate to the share you didn’t buy and are below market rate. This way the overall cost (including your mortgage) may be lower than what you would otherwise pay as rent to your landlord.

Over time, you could potentially buy additional shares up to 100%. When you do sell the property, you will get the percentage of the sale price that you own at that point. Well, you will get the equity from your percentage, as the mortgage will be settled first from your share of the sale.

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How can we help you?

As independent, whole of market mortgage brokers, we have access to the lenders who offer mortgages for the Shared Ownership scheme (both for purchase and remortgage transactions). Based on our experience and expertise, we can find the most suitable deal for you.

Should you have any questions during the process, we are available from start to finish to answer your queries and help you with the necessary paperwork.

Steps to shared ownership

Number 1

Check your eligibility

You need to meet these 3 criteria to qualify for the Shared Ownership scheme:

  • Your gross household income is no more than £80,000 per annum outside London or £90,000 in London
  • You are unable to buy a suitable home on the open market
  • You do not currently own a property or will have sold your property by the time the shared ownership purchase completes

Optionally, you may qualify if you are a serving or a former (discharged within the last 2 years) British Armed Forces personnel.

There may be additional criteria for a specific property or development or by the subject housing association, so always check eligibility before applying.

Number 2

Speak to a mortgage broker to get to know your mortgage options

As not all lenders offer mortgages for shared ownership and they all have varying criteria and potential borrowing figures, the quickest way to check your options is to speak to a broker. At BlueWing Financials, our independent advisors have access to the lenders who support the shared ownership scheme and will find the right lender for you based on your circumstances.

Number 3

Register with the appropriate housing association and get approved by them

With the shared ownership scheme, you are essentially renting a part of the property from the housing association.

First, you will need to register with the appropriate housing association by completing their form. Then a mortgage broker firm nominated by the housing association will assess your financial situation before you are approved for the scheme. However, going forward, you are legally free to use any broker for the mortgage application.

Number 4

Find a property you like and have an offer accepted

Sometimes easier said than done, as demand can be high for shared ownership properties and often it is on a first come, first served basis. You can search for properties on housing association websites, dedicated shared ownership websites or by enquiring at new developments.

Number 5

Apply for the mortgage and start the legal process

Once your offer is accepted, it’s time to set things in motion with your chosen broker and solicitor. At BlueWing Financials, we encourage you to engage with us even before your offer is accepted. This will allow you to prepare upfront by checking lender options and collecting necessary paperwork in order to path the way for an application.

Number 6

Exchange contracts

The exchange of contracts happens once the lender issues a mortgage offer and your solicitors finish their legal checks. It’s at this stage that the deposit is paid and the purchase becomes legally binding. You’re nearly there!

Number 7

Complete the purchase and move in

At a later date (agreed when exchanging contracts), the remaining purchase price is paid to the housing association and you’ll get the keys to your new home. At the same time, the solicitor will take care of the Land Registry paperwork and the Stamp Duty Land Tax payments, so you will officially become a homeowner.

What about buying an additional share or selling the property?

In these cases, you will have to first engage with the housing association to discuss your intention and establish the property value. They will also give you information about the next steps.

It is also worth seeking mortgage advice regarding your options, so you can make an informed decision about the way forward.

Give us a call and we’ll be happy to assess your options and assist during the process until completion.

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Need more info about the Shared Ownership scheme?

You can find further information and the latest news on the Shared Ownership scheme by following these links

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Help to Buy
Shared Equity
Rent to Buy
Right to Buy
Starter Homes
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