Published on October 19, 2026
Shared ownership can be a helpful option for buyers who cannot afford to purchase a home outright on the open market. Instead of buying 100% of the property straight away, you buy a share and pay rent on the remaining share, which a housing association or registered provider usually owns.
You will usually need a mortgage for the share you are buying, along with a deposit based on that share. This can make the upfront deposit lower than when buying the full property, but remember that you may also need to pay rent, service charges, and other property costs each month.
Shared ownership is not right for everyone, and the rules can vary depending on the property, provider, and scheme. In this guide, we’ll explain how shared ownership mortgages work, what costs to consider, and what buyers should know before applying.
Shared ownership is a homeownership scheme where you buy a share of a property rather than the whole property straight away. You then pay rent on the remaining share, which is usually owned by a housing association, local authority, or registered provider.
For example, instead of buying 100% of a property, you might buy a smaller share and take out a mortgage on that part. You would then pay rent on the share you do not own, along with any service charges and other property costs.
| Part of shared ownership | What it means |
| Your share | The percentage of the property you buy |
| Mortgage | Usually used to buy your share |
| Deposit | Usually based on the share you are buying, not the full property value |
| Rent | Paid on the share you do not own |
| Service charge | May cover maintenance of communal areas or building costs |
| Lease | Shared ownership homes are usually leasehold |
Shared ownership can make buying a home more achievable for some people because the mortgage and deposit are based on the share being purchased. However, it is important to look at the full monthly cost, not just the mortgage payment.
The rent, service charge, insurance, bills and future increases all need to be considered before deciding whether shared ownership is affordable.
With shared ownership, the mortgage is usually based on the share of the property you are buying, not on the home’s full market value. This means the deposit is also usually calculated against your share rather than the full property price.
For example, if the full property value is £250,000 and you are buying a 40% share, your mortgage would be based on the £100,000 share you are purchasing.
| Example | Amount |
| Full property value | £250,000 |
| Share being purchased | 40% |
| Value of your share | £100,000 |
| 10% deposit on your share | £10,000 |
| Mortgage needed | £90,000 |
This can make the deposit more achievable compared with buying the full property, but buyers still need to pass the lender’s affordability checks.
The lender will look at your income, credit history, debts, outgoings, deposit, and whether the full monthly cost is affordable. This includes the mortgage payment, rent on the remaining share, service charge, household bills and any other regular commitments.
Not all lenders offer shared ownership mortgages so lender choice can be more limited than with a standard residential mortgage. This is why it is worth checking your options before applying.
Shared ownership can reduce the size of the mortgage you need, but it is important to look at the full monthly cost before applying. You are not just paying the mortgage on your share of the property. You will usually also pay rent on the share you do not own, plus service charges and normal household bills.
| Cost | What it means |
| Mortgage payment | Paid on the share of the property you are buying |
| Rent | Paid on the share owned by the housing provider |
| Service charge | May cover maintenance, communal areas or building costs |
| Ground rent | May apply depending on the lease |
| Buildings insurance | Sometimes arranged through the housing provider |
| Solicitor fees | Legal costs for buying the property |
| Valuation fees | May apply depending on the lender |
| Moving costs | Removals, furniture and setup costs |
The rent and service charge can make a big difference to affordability, so lenders will usually include these costs when deciding how much you may be able to borrow.
It is also worth checking whether the rent or service charge could increase in the future. A property with shared ownership may look affordable today, but you should feel comfortable with the overall monthly cost, including potential future changes.
Shared ownership can reduce the size of the mortgage you need, but it is important to look at the full monthly cost before applying. You are not just paying the mortgage on your share of the property. You will usually also pay rent on the share you do not own, plus service charges and normal household bills.
| Cost | What it means |
| Mortgage payment | Paid on the share of the property you are buying |
| Rent | Paid on the share owned by the housing provider |
| Service charge | May cover maintenance, communal areas or building costs |
| Ground rent | May apply depending on the lease |
| Buildings insurance | Sometimes arranged through the housing provider |
| Solicitor fees | Legal costs for buying the property |
| Valuation fees | May apply depending on the lender |
| Moving costs | Removals, furniture and setup costs |
The rent and service charge can make a big difference to affordability, so lenders will usually include these costs when deciding how much you may be able to borrow.
It is also worth checking whether the rent or service charge could increase in the future. A property with shared ownership may look affordable today, but you should feel comfortable with the overall monthly cost, including potential future changes.
Shared ownership is usually aimed at people who cannot afford to buy a suitable home outright on the open market. This often includes first-time buyers, but some previous homeowners may also be eligible if they no longer own a property or cannot afford to buy again.
Eligibility can depend on the property, location, housing provider and scheme rules. For many shared ownership homes in England, household income usually needs to be no more than £80,000 a year, or £90,000 a year in London.
Some properties may also have local connection rules, meaning priority could be given to people who live or work in the area. Because eligibility can vary, it is important to check the specific rules for the property you are interested in before applying.
Even if you meet the shared ownership scheme rules, you will still need to pass the mortgage lender’s affordability and credit checks.
Staircasing is the process of buying additional shares in your shared-ownership home after you have already purchased your initial share. As your ownership share increases, the share owned by the landlord or housing provider reduces, which usually means the rent you pay on the remaining share goes down. Shared owners can buy more shares in their home after becoming owners, a process known as staircasing.
| If you staircase | What usually happens |
| You buy more of the property | Your ownership share increases |
| The housing provider owns less | Your rent usually reduces |
| The property is valued | The cost of extra shares is based on the current value |
| Legal work may be needed | Solicitor and admin costs may apply |
| Your mortgage may change | You may need to borrow more or remortgage |
The amount you can buy at a time can depend on your lease and the shared ownership scheme. Some leases allow you to buy extra shares of 10% or more, while some newer leases may allow smaller shares.
Staircasing can be a useful way to increase your ownership over time, but it is important to consider the full cost. You may need a valuation, legal advice, lender approval, and an affordability review before buying more shares.
Shared ownership can be a useful route onto the property ladder, but it is important to understand both the benefits and the considerations before applying.
| Potential benefit | Things to consider |
| Lower deposit compared with buying 100% | You still pay rent on the share you do not own |
| The mortgage is based on your share | You must still pass affordability checks |
| May help buyers purchase sooner | Service charges and rent can increase |
| Option to staircase later | Buying more shares may involve extra costs |
| Could suit some first-time buyers | Not every lender offers shared ownership mortgages |
The biggest advantage is that you may need a smaller mortgage and deposit compared with buying the full property. This can make shared ownership more accessible for buyers who are struggling to save a larger deposit.
However, the monthly cost needs to be reviewed carefully. Your mortgage payment is only one part of the total cost. Rent, service charges, bills, insurance, and future increases can all affect affordability.
Shared ownership can work well for some buyers, but it is not automatically the cheapest or best option for everyone. Before applying, it is worth checking the full monthly cost, the lease terms, staircasing rules, and which lenders may be available.
Shared ownership mortgages can be more specialised than standard residential mortgages, so it helps to understand your options before applying. Not every lender offers shared ownership mortgages, and those that do may have different rules around affordability, deposits, property type and lease terms.
At Search Mortgage Solutions, we offer 100% fee-free mortgage advice and can help you understand what mortgage options may be available based on your circumstances.
We can help you:
Shared ownership can involve extra details, such as housing provider requirements, lease terms, rent on the unsold share and staircasing rules. We can help you understand the mortgage side of the process and guide you from initial enquiry through to completion.
Search Mortgage Solutions is based in Manchester and helps clients locally and across the UK. Whether you are buying your first shared-ownership home or considering your next move, we can help make the mortgage process clearer.
Shared ownership can be a helpful way to get onto the property ladder if buying a home outright is not currently affordable. By purchasing a share of the property and paying rent on the remaining share, some buyers may be able to reduce the size of the mortgage and deposit they need upfront.
However, it is important to look at the full picture before applying. The mortgage payment is only one part of the cost. You will also need to consider rent, service charges, household bills, lease terms, future increases and whether you may want to staircase later.
Not all lenders offer shared ownership mortgages, and criteria can vary. Getting advice early can help you understand what may be affordable and which lenders may be suitable for your circumstances.
At Search Mortgage Solutions, we offer 100% fee-free mortgage advice and have access to mortgage options from a wide variety of lenders. We can help you understand your options before you apply.
Thinking about buying through shared ownership? Get in touch with Search Mortgage Solutions today to speak with a mortgage adviser.