Explaining Shared Ownership: Is It the Right Mortgage Scheme for You?


If a traditional mortgage is a bit out of reach for you, you’re not alone. Shared ownership could be your opportunity to become a homeowner. This scheme has been a game-changer for many, and it could be the perfect fit for you too.

What Is Shared Ownership?

Shared ownership is a part buy, part rent way of owning your home. Typically, you buy a share of your home (between 10% and 75% of the home’s value) and pay rent on the remaining share.

Key Factors:

This scheme makes homeownership more accessible because:

  • You buy what you can afford. You start by purchasing a share that suits your budget.
  • You have the option to increase your share. Buying more shares in your home can make it more affordable for you and you can fully own the home (with a mortgage) at some stage in the future. Staircasing is the process of buying more shares.
  • There are lower deposit requirements. The deposit you need for a mortgage under this scheme is usually lower compared to buying a home although, the percentage is generally the same, it’s a percentage of a smaller share and therefore easier to save up for.

Is Shared Ownership Right For You?

It’s important to assess whether shared ownership aligns with your needs and circumstances, a mortgage adviser can help you with this.


  • Stepping stone to full ownership: It’s a great way to get onto the property ladder if you can’t afford to buy a house or save enough for a deposit on the full value of a home.
  • More affordable in the short term: By only buying what you can afford and needing a smaller deposit, it eases the impact on your finances.
  • Flexibility: You can increase your share as your financial situation improves.


  • Limited control: There may be restrictions on what you can do with the property as you’re not the full owner.
  • Service charges: You may have to pay service charges for the maintenance of common areas.
  • Selling Challenges: Selling your share can sometimes be more complex than selling a property that you fully own.

Understanding the Financials

In shared ownership you need to consider the following:

  • Mortgage payments: For the share you own.
  • Rent: For the share you don’t own.
  • Service charges: Covering the maintenance of communal areas.

Steps To Get Started

Eligibility Check: The criteria for shared ownership usually requires you to be a first-time buyer or not currently owning a home as well as, income limits.

Obtain an agreement in principle: This gives you, the estate agents and the seller confidence that you are a serious buyer and able to buy a house within the loan amount your agreement in principle is and be fully considered for a mortgage.

Find a shared ownership property: Start looking for properties under this scheme.

Apply for a mortgage: Get advice on getting a shared ownership mortgage. Mortgage advisers can help find you the right rates and negotiate on your behalf.

Complete the purchase: A solicitor will work with you to handle the legal aspects.

Final Thoughts

If the traditional route feels out of reach, shared ownership can be a fantastic way to make your dream of homeownership a reality. Remember, it’s all about finding the right fit for your unique situation. Do your research, consider your long-term plans, and seek professional advice.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

Barfield Financial Advisors | Mortgage, Investment & Insurance Advice

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