Saving for a deposit isn’t always easy, especially if you’re paying other living costs at the same time. But with Help to Buy Shared Ownership , you could apply for a smaller mortgage which means your deposit would be smaller too.
How does a Shared Ownership mortgage work?
With a mortgage for Shared Ownership, you purchase a share of the property you want to buy – usually between 25% and 75% - and rent the rest of your home from a housing association, usually below the market rate.
You then have the option to increase your share over time, at a price based on the value of the property at the time – so if property prices rise, you'll pay more for your share, if they fall, you'll pay less. In many cases you can increase your share up to the point where you own 100% of your home; this is known as staircasing. Shared Ownership properties are always leasehold.
But remember, when budgeting for your Shared Ownership property, you need to budget for both the monthly mortgage payments and the rent.
Am I eligible for Shared Ownership?
You can buy a home through Shared Ownership if your household earns less than £80,000 a year (or £90,000 in London) and:
- you’re a first-time buyer, or
- you used to own a home, but can’t afford to buy one now, or
- you’re an existing shared owner.
Our Shared Ownership mortgages are only available in England and Wales to those eligible to take part in the scheme and who have the option to 'staircase' until they own 100% of their home. All applications are subject to housing association approval.