Damian Youell

I’m Damian Youell an experience mortgage broker with over a decade of experience. I’m dedicated to helping clients by offering an efficient and friendly service.

Over the years we have streamlined our systems and procedures and adapted processes to enable us to make the whole process very straight forward and easy for our clients.

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Shared Ownership Mortgages Explained

It is becoming increasingly hard to get onto the property ladder but with schemes in place such as Shared Ownership, there are other ways a purchaser can enter into the property market. Shared Ownership can allow you to apply for a smaller mortgage amount, therefore decreasing the deposit required.

Below we look further in detail of the Shared Ownership Scheme, provide an example and discuss the advantages and disadvantages.

Post Topics

What are share ownership mortgages?


Who can qualify?




How to get Started

Next Steps





What is Shared Ownership?

Shared Ownership is different from the government backed scheme Help to Buy: Equity Loan where an equity loan of up to 20% of the property price (or up to 40% in London) is provided to help purchasers towards their deposit.

Shared Ownership allows someone to part-buy, part-rent a home from housing association (arranged by a local Help to Buy agent) and the share you can initially purchase is usually between 25% – 75% of the property price. You are given the option later on to purchase more of a share of the property from the housing association until you own the full 100% and this process is called ‘staircasing’.

You provide a deposit and take out a mortgage for your share of the property and rent is paid on the remainder to the housing association.




Example Shared Ownership


You wish to purchase 25% share of a £200,000 property under shared ownership.


Housing association’s share (75%) = £150,000


Your share of the property (25%) = £50,000


Your deposit (10% of your share of £50,000) = £5000


Mortgage required (£50,000 – £5000) = £45,000




Who can qualify for shared ownership?


Aged 18 years or older.


Have joint income of less than £80,000 a year (less than £90,000 in London).


Be a first time buyer or a former homeowner who can’t afford to buy now or renting from a council or housing association.


You cannot own any other properties with using the Shared Ownership Scheme.


Have no mortgage or rent arrears.


Military personnel are given priority over other groups, however some councils may have their own priority groups based on local housing needs.


If you have a long-term disability, you can be qualified for this scheme under the government’s Home Ownership for People with Long-Term Disabilities (HOLD).




Staircasing and How if Works


As we mentioned before, you are given the opportunity to purchase more shares from housing association up to owning 100% of the property in a process called ‘staircasing’.


If you wish increase your share of a shared ownership property, you’ll need to pay for housing association to carry out a mortgage valuation for the current value of your home and this will determine the price of purchasing more shares. If the value of your home has increased, the cost to purchase more shares will go up and less if it’s fallen.


Shares can be bought in increments of 10% and the more shares of your home you purchase, the lower your rent will be.


When you come to sell your property, the proceeds are split between yourself and the housing association, depending on the share amount you both own.






  • Suitable for people who cannot get a property via the traditional method of the open market.
  • Could enable someone to step onto the housing ladder who otherwise couldn’t before due to not having a sufficient deposit or struggling to save. For example, on a £200,000 property you may need a percentage of £200,000 for your deposit whereas with using the Shared Ownership Scheme you may only need a percentage of the share you wish to purchase.
  • Rent charged by the housing association is below the market value of the private rental sector.
  • It can be a stepping stone to another property as overtime your income could increase or you could meet a partner and wish to move onto another property together. In the meantime, equity increases over time as you are reducing the mortgage debt which could be used as a deposit for your next property.
  • Many mortgage lenders to choose from for shared ownership mortgages.
  • Can increase your ownership overtime where later down the line you may be in a better position to purchase more of a share in the property. This is called staircasing and can mean you have the option to eventually own 100% share in your property.
  • Shared ownership properties can apply to existing properties and new builds (flats and houses).
  • Typically only required to have a 5% deposit with Shared Ownership whereas most other mortgage deals require at least 10%.
  • Most lenders including ones not on the high street can offer mortgage products for Shared Ownership Schemes.






  • Restricted to shared ownership properties on the market only.
  • Not every location has shared ownership properties so a buyer may have to consider moving to another area to be able to take advantage of Shared Ownership Scheme.
  • Have to pay service charge and annual ground rent on top of your mortgage payment and rent.
  • Have to abide by terms and conditions set by Housing Association and if you don’t own the property fully, you may need to gain permission from the Housing Association to make improvements and changes.
  • Not entitled to rent or sublet your property out if you need to move elsewhere.
  • It could be difficult to achieve a quick sale when you come to sell, as there might be restrictions on who can qualify to buy your home.




How to get started


Contact the local Help to Buy agent in your desired area to find properties:








Next Steps


If you are considering using the Help to Buy: Shared Ownership scheme and need assistance with applying for a mortgage, please contact us and we will be happy to help.






How does remortgaging work?

Remortgaging is the process of switching an existing mortgage to a new mortgage deal by utilising the same property as security. It is always easy to switch to the same lender, but you can also switch your remortgage deal to a new provider if needed. 

Read more about remortgages in our article “Can I remortgage to pay off debt?”.

Is there any change in monthly payments while we remortgage?

Yes, as the base mortgage rate increases, the monthly payment amount increases. But you can always contact a known mortgage broker to get an affordable deal on remortgages. 

Can you remortgage on shared ownership?

Yes, there are some mortgage providers who can remortgage on shared ownership. However, it depends on how much equity you have built up in the property. If you have less than 20%, then you cannot do this type of remortgage. If you have between 20-50% equity, then you can apply for a remortgage. You must meet certain criteria such as having a good credit score and proof that you have been paying the ground rent. Learn more about shared ownership mortgages on our blog.  

What happens if I want to remortgage my house?

You can remortgage your house anytime you like. As long as you have met all the requirements, you can easily remortgage your house. The main thing is that you should know what you are doing before you start. There are many things to think about before you remortgage your house including the interest rates, fees and charges. So, it’s better to talk to a trusted mortgage adviser first. 

Do I need to pay stamp duty on remortgaging?

No, you don’t need to pay stamp duty when you remortgage. This means that you can save money on the stamp duty cost. 

How can shared-ownership help an individual to get onto a property ladder? 

Shared ownership can help you to buy property as a first-time buyer more quickly and with affordability. As a time buyer, you can also sell shared ownership at any time and could benefit from the increased value.  If you want to learn more, you can read our guide to shared ownership