Shared Ownership Mortgages Explained

Shared Ownership Mortgage schemes are used for part buy, part rent schemes commonly known as shared ownership.

These type of mortgage scheme are popular with first-time buye because they only need to find a fraction of the deposit ( 100% mortgages are available) and mortgage amount needed to buy a similar property on the open market.

When you buy a shared ownership property, you only buy a percentage stake in the property, usually 25 to 50 per cent – from a housing association. Although this can be affordable, as you only own a percentage of the property you will miss out on some of the equity growth if the housing market rises.

You can, however, staircase‘ which means buying another portion of the property later on.

Many of these shared ownership schemes, which often offer properties at a discount, are open to all comers through housing associations. Shared ownership mortgage schemes vary form lender to lender with some lending up to 100% loan to value on the purchased share.

Compare Shared Ownership Mortgages

Our shared ownership mortgage repayment calculator will allow you to compare the shared ownership mortgages available from the major mortgage lenders today. It is important to remember when comparing mortgage schemes that the rent payable to the housing association will be classed as a commitment when a shared ownership lender calculates the mortgage amount they are prepared to offer.

Shared Ownership Monthly Budgeting

It is important to make sure that the new shared ownership mortgage is affordable try Go Direct's mortgage budget planer to calculate how much you can afford for your new mortgage shared ownership mortgage.