How Shared Ownership Mortgages Work in the UK

Discover how Shared Ownership mortgages work, who is eligible, and whether this scheme could help you step onto the UK property ladder with a smaller deposit.

Shared Ownership is a government-backed scheme designed to help people get onto the property ladder who might not be able to afford to buy a home outright. In simple terms, it allows you to buy a share of a property (usually between 10% and 75%) and pay rent on the remaining share, which is owned by a housing association. This means you need a much smaller deposit and a smaller mortgage than you would if you were buying the whole property.

If you are struggling to save a large deposit or your income does not stretch to a standard mortgage for the home you need, Shared Ownership could be a viable alternative. Read on to explore how the scheme works, who is eligible, and what to consider before applying.

When you buy a Shared Ownership home, you are purchasing a leasehold property. This means you have the right to live in the property for a fixed number of years (usually 99 or 125 years, though newer leases can be up to 990 years), but the housing association or landlord owns the freehold.