What is a shared ownership mortgage?

Shared ownership mortgages offer a helpful route onto the property ladder, especially if you're finding it tough to save a hefty deposit. Instead of buying the entire property, you purchase a share of it, typically between 25% and 75%, and pay rent on the remaining portion. Some schemes even let you start with just a 10% share.

One of the key benefits is the smaller deposit you’ll need to put down. Since you're only buying a share of the property, your deposit is based on that portion, often between 5% and 10% of your share. This makes homeownership more accessible for many first-time buyers.

Over time, you have the option to increase your ownership through a process called 'staircasing'. This means you can buy additional shares in your home, reducing the rent you pay accordingly.

Are you eligible for a shared ownership mortgage?

Shared ownership is a government-backed scheme that has clearly defined eligibility criteria. This includes a requirement that the property is a new-build home or an existing home through a shared ownership resale scheme. Other criteria include a need for your household income to be less than £80,000 a year, or £90,000 in London, and that you cannot afford a home without support from this scheme. Please visit the gov.uk for more details on who can apply.

As well as meeting the shared ownership criteria, you will also need to meet your lender’s criteria for a shared ownership mortgage, such as:

  • Affordability: You'll need to demonstrate that you can comfortably afford all your mortgage payments, in addition to your rent and other financial commitments like utilities and childcare, for example.​

  • Credit history: Whilst there isn’t a specific credit score required for a mortgage, having a higher score can boost your chances of being approved. It might be worth checking to see if there is anything you can do to improve your report before you apply for a mortgage.

Every lender’s a bit different, so it’s very important to compare your options to find the right fit for your situation.

How much can I borrow with a shared ownership mortgage?

As with other types of mortgage, how much you can borrow will depend largely on affordability, including:

Your income

You will need to show that you earn enough to afford the mortgage payments as well as the rent.

Monthly outgoings

Lenders will also consider your regular expenses like bills, credit card payments and childcare costs to make sure the mortgage and rent are affordable.

Affordability stress tests

Lenders will check if you could afford your mortgage - in addition to the rent - if interest rates rise.

One more thing… your home could be repossessed if you don’t keep up repayments on your mortgage, so make sure you’re comfortable with what you can afford before taking the plunge.

Mortgage guides

Answering your questions about shared ownership mortgages

Page updated on 12th September 2025, Reviewed by Richard Groom