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What is a shared ownership mortgage?

A shared ownership mortgage is a term used for a property loan that you obtain to buy a house that you partly own and for the rest of the part you pay rent. It means you can buy the 75% share of a home and the rest of the 25% remains under the authority of the housing association. For the part that is owned by the association, you have to pay a particular rent.

How the shared ownership mortgage works?

  • To buy a home through shared ownership, you need first to contact the ‘help to buy’ local agents.
  • Once you finalise a property you need to decide how much part you want to own such as 25%, 40%, 75% etc.
  • Rest of the property share remains under the authority of the housing association
  • Find a suitable and relatable mortgage deal either on your own or through a broker.
  • Your mortgage is the reciprocation of the share of ownership you have in the house
  • In shared ownership, it is necessary to prove repayment on the two fronts. 1) for mortgage repayments 2) for paying rent for the rest of the property share.

Did you know?

  • You get a shared ownership mortgage only when you are intended to occupy the property.
  • You cannot put the other part of the house (in control of housing company) on rent.

How much deposit is required for a property through shared ownership?

Your mortgage acts according to the percentage of share of the property you purchase, and the deposit will also apply accordingly. It means if you are buying the 75% of the property, your down payment is 5% to 10% of that value.

An example here can explain you clearly –

Total property value is £3,50,000
You are buying 75%
75% of the total property value is £2,62,500
You need to deposit (5%) £13,125 and 10% £26,250

Whatever percentage you give 5% or 10%, you will pay only against the percentage of the property value that you buy and not the total price of the home. The similar rule is applicable in the case of affordability for a mortgage. Your repaying capacity is calculated only according to that specific value that you will own after buying. Shine Mortgages has advanced financial tools such as shared ownership mortgage calculator, repayment calculator, rate change calculator and stamp duty calculator that give almost perfect results. The deal becomes predictable, and you can make confident decisions.

Note: The initial rate shared ownership mortgages for two years starts from 1.33%, and for five years it is 1.5% while variable rate starts from 3.2%.

How to get a quote for a shared ownership mortgage?

The process is quite simple and easy to understand because we always make things easier for you.

  • Visit our website
  • Fill the one-page form
  • Submit
  • Within 15 minutes, we will contact you with the most promising mortgage deals suitable according to your financial capacity.

After you get the quote, you can either pick a deal immediately or can meet us virtually/face-to-face to get a better understanding and comparison between the suggested deals.

We deal with -

  • Banks
  • Building societies
  • Direct lenders

Note: Shared ownership mortgages are available only for the first time buyers. With its comprehensive approach, Shine Mortgages can manage to arrange nationwide shared ownership mortgage deals. We exist across the UK, and whatever is your location, we are sure to serve you there with the complete knowledge of the local market.

Why Choose Shine Mortgages

With us, you can get the hassle-free experience of borrowing funds, and there are ample reasons for that which you read below –

  • Multiple choices of shared ownership mortgage lenders
  • Both fixed and variable rate options are available
  • Bad credit deals are available
  • Leave all the formalities and application procedure on us
  • The Commitment of customer-friendly mortgage options
  • The dedicated team of experts to provide 24x7 assistance
  • We have no broker fee and no hidden charges

The mortgage for shared ownership works in a bit different manner than the other mortgage types. It is the only property purchase where the owner does not own the whole property. This situation makes it necessary to find mortgage deals with expert knowledge and Shine Mortgages possesses that knowledge. Visit us online or call on our number available round-the-clock and get instant choices for your mortgage needs..


What is Shared ownership?

Shared ownership is an affordable way of buying a house with a housing association. You can buy a certain percentage of a home from a minimum of 25% to a maximum of 75%, and the association owns the rest of the part. For the share that you do not own, rent needs to be paid to the housing company. It is possible to buy a bigger share than the maximum limit but if you can afford to do that.

Is it hard to get a shared ownership mortgage?

Is shared ownership only for first-time buyers?

What happens to my shared ownership property when I die?

The case of death of a homeowner through shared ownership drives attention to three different conditions. According to the situation only, the final action takes place.

  • When you die with a will – As we all know, if you die and leaves a will with the mention of a successor to the home, it passes on to the concerned person.
  • When you die without a will – In this condition, the half share of the house is given to the life partner wife/husband, and the other part goes to the children equally.
  • If you die but have a joint tenant – The case is clear here, the joint tenant takes the burden of the obligation as well as the right on the house.

What is the difference between help to buy and shared ownership?

There is a clear difference between the two as both serve for different purposes.

Shared ownership Right –to-buy
It is designed for those with lower income to help them buy the house. It is designed to help the occupants of a council house buy the same.
Through shared ownership, you can buy any new home constructed under the scheme. To buy a house under the right-to-buy scheme, you have to stay in that house for minimum of three years.