Call 03301 334 199 or Whatsapp us 07950545264 hello@abc-mortgages.co.uk
Call 03301 334 199 or Whatsapp us 07950545264 hello@abc-mortgages.co.uk
Shared ownership mortgages can help eligible buyers purchase a share of a home while paying rent on the remaining share, potentially providing another route into homeownership when purchasing a suitable property outright is not affordable.
At ABC Mortgages, we provide Shared Ownership mortgage advice to buyers throughout Kent and further afield. Whether you are a first-time buyer, looking at a particular Shared Ownership property or simply trying to understand how the scheme works, we can help you explore your mortgage options and guide you through the application process.
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Your home / property may be repossessed if you do not keep up repayments on your mortgage.
Last Updated: 16th October 2026
Shared Ownership can provide an alternative route into homeownership for people who cannot currently afford all of the deposit and mortgage payments required to purchase a suitable home outright.
Under the scheme, you buy a percentage of the property and pay rent on the share retained by the housing provider. Depending on the home and scheme, buyers can purchase a share between 10% and 75% of the property’s market value, although the share available on individual properties can vary. You can normally use a mortgage to finance the share you are buying.
This means the mortgage itself may be considerably smaller than the amount required to purchase the full property. However, Shared Ownership also comes with other costs, such as rent on the provider’s share and potentially service charges, estate charges or management fees.
From our base in Sittingbourne, ABC Mortgages helps customers across Kent understand how shared ownership mortgages work and whether suitable lending options may be available based on their circumstances.
Shared ownership mortgages are mortgages used to finance the portion of a Shared Ownership property that you are purchasing. For example, imagine a property has a full market value of £300,000 and you are purchasing a 40% share. Your share would be worth £120,000. You would normally provide a deposit towards that £120,000 share and use a mortgage to finance the remaining amount required.
You would then pay rent to the housing provider on the remaining 60% of the property that you do not own. The important point is that your mortgage is based around the share you are purchasing, rather than necessarily borrowing against the property’s entire market value.
Shared Ownership properties are leasehold, and the lease sets out important information such as the shares you can purchase, rent arrangements and the process for buying additional shares later. Because both the Shared Ownership provider and mortgage lender have requirements that need to be met, arranging finance can be different from purchasing a conventional property.
With shared ownership mortgages, there are normally several different housing costs to consider rather than one mortgage payment alone. You will have the mortgage repayment associated with the share you own. You will also normally pay rent to the housing provider on the share you do not own. Depending on the property, you may also have service charges or other ongoing property-related costs.
For example, if you purchase a 40% share in a property, you own that 40% and the housing provider retains the remaining 60%. Your mortgage is used towards purchasing your share, while rent is calculated against the provider’s remaining ownership. Before buying, the provider will usually assess whether the Shared Ownership property and proposed share are affordable for you. Your mortgage lender will separately assess whether it is prepared to offer the mortgage you require.
This means affordability needs to work from both perspectives. It is not simply a case of finding a property and applying for a mortgage based on the value of your share. At ABC Mortgages, we can help you understand the mortgage side of the process and explore lenders that may be suitable for your proposed Shared Ownership purchase.
Shared Ownership is designed to help people who cannot afford all of the deposit and mortgage payments required to purchase a suitable home outright.
For Shared Ownership homes funded through Homes England outside London, household income is generally required to be £80,000 a year or less. Applicants must also be unable to afford a suitable property on the open market. Providers carry out their own eligibility and affordability assessments before a purchase can proceed.
Shared Ownership is not restricted entirely to first-time buyers. Depending on the circumstances, it may also be available to previous homeowners, people forming a new household, existing shared owners or homeowners who need to move but cannot afford a suitable new home outright.
Individual properties or developments may also have additional requirements, so meeting the broad scheme criteria does not guarantee that you will be eligible for every Shared Ownership property. You must also satisfy the mortgage lender’s separate affordability and lending criteria before your mortgage can be approved.
One of the key differences with shared ownership mortgages is that your deposit is usually calculated against the value of the share you are purchasing rather than the full market value of the home. Deposits are generally around 5% to 10% of the share being purchased, although the actual amount required will depend on the mortgage lender and your circumstances.
For example, imagine you’re purchasing a 40% share of a £300,000 property.
Your share would be worth £120,000.
A 5% deposit against that share would be £6,000.
The amount you actually need may be different, depending on the lender, mortgage product, property and your financial position, but this illustrates why Shared Ownership can sometimes reduce the initial deposit required compared with purchasing the entire property. You will also need money for other purchasing costs, so your available savings should not necessarily be used entirely towards your mortgage deposit.
How much you can borrow depends on your income, regular expenditure, existing financial commitments, credit history, mortgage term and the lender’s affordability criteria. However, Shared Ownership affordability has an additional consideration: your mortgage isn’t your only housing cost.
The lender and provider may need to take account of the rent payable on the unsold share, service charges and other ongoing costs alongside your proposed mortgage repayments. This means someone who appears able to afford a certain mortgage based purely on income may receive a different borrowing figure once all of the Shared Ownership costs are taken into consideration.
Different mortgage lenders also use different affordability calculations and lending criteria. Our Affordability Calculator can give you an initial indication of borrowing, but a full assessment is required to understand what may be available for your individual Shared Ownership purchase.
When comparing shared ownership mortgages, it is important to look beyond the mortgage deposit and monthly repayment. You will normally need to budget for rent on the share retained by the housing provider. There may also be service charges, estate charges, management fees or contributions towards certain maintenance costs, depending on the property and lease. Buying costs can include solicitor or conveyancing fees and mortgage-related fees where applicable. You may also need to consider Stamp Duty Land Tax depending on your circumstances and how you choose to deal with it when purchasing the property.
Some Shared Ownership properties require a reservation fee, which may be up to £500. The amount may normally be deducted from the final sum paid at completion if the purchase proceeds.
The provider should also give you a Key Information Document setting out the costs associated with the property before you reserve it.A smaller mortgage therefore does not automatically mean that the total monthly housing cost will always be lower. Mortgage repayments, rent and applicable charges should be considered together when assessing affordability.
Staircasing is the process of purchasing additional shares in your Shared Ownership property after the initial purchase. As you increase the percentage of the property you own, the percentage retained by the housing provider reduces. This generally means you pay less rent because rent is based on the provider’s remaining share. The amount you can purchase at a time depends on the terms of your lease.
Some leases allow additional shares of 10% or more, while newer leases may allow purchases in increments of 5% or more. Certain qualifying homes purchased under the newer Shared Ownership model may also allow the owner to buy an additional 1% each year for the first 15 years.
The cost of purchasing further shares is generally based on the property’s value at the time you staircase, and valuation and administration costs may apply. If you are considering increasing your ownership, ABC Mortgages can also help you explore the mortgage side of Shared Ownership Staircasing.
Many Shared Ownership homeowners can potentially purchase further shares until they own 100% of the property.
However, this is not universal.Most Shared Ownership homes allow staircasing to 100%, but there can be exceptions. Certain properties within designated protected areas may restrict the maximum ownership level, while some specialist Shared Ownership arrangements may also limit the maximum share that can be purchased.
This is why it is important to understand the particular lease attached to the property you are buying rather than assuming every Shared Ownership arrangement works in exactly the same way.
If you intend to staircase in the future, checking these provisions before purchasing can help you understand your longer-term options.
Yes, shared ownership mortgages are commonly considered by first-time buyers who are unable to purchase a suitable property outright.Because the buyer is purchasing only a portion of the property’s market value initially, the mortgage and deposit required may be lower than they would be when purchasing the entire home.
However, Shared Ownership is not exclusively a first-time buyer scheme.Previous homeowners and some existing homeowners can also potentially qualify where they meet the relevant eligibility criteria and cannot afford a suitable home outright.
Being eligible for the Shared Ownership scheme does not automatically guarantee mortgage approval. You’ll still need to satisfy the lender’s affordability, credit and property requirements.If this is your first property purchase, ABC Mortgages can explain both the Shared Ownership process and the mortgage application so you know what to expect at each stage.
Shared Ownership is available across different types of eligible property.
The scheme can include new-build homes and existing Shared Ownership properties being sold through a resale scheme. There may also be specialist arrangements available in certain circumstances. You cannot simply choose any property on the open market and decide to purchase part of it through standard Shared Ownership.
The property needs to be offered through the relevant scheme by a housing association, local council or another approved provider. Availability therefore varies according to location, development and housing provider.
Yes. A Shared Ownership property can be sold, although the process can differ from selling a property you own outright. If you do not own 100% of the home, you will normally need to tell your housing provider that you wish to sell. Depending on the lease, the provider may have a nomination period during which it has the opportunity to find a suitable buyer for your share.
If the provider does not find a buyer within the applicable nomination period, you may then be able to sell your share on the open market, subject to the terms of your lease. A professional valuation will normally be required to establish the current market value of the property and your share.
If you own 100% of the property, the selling process may be different, again depending on the property and lease.
Shared Ownership can provide a useful route into homeownership, but it is not automatically the right solution for every buyer.
While purchasing only part of a property may reduce the mortgage and deposit needed initially, you still need to consider the rent on the remaining share and any service charges or other ongoing costs.
You should also understand the lease, future rent arrangements, responsibilities for repairs and maintenance, staircasing provisions and how the property can eventually be sold.
If you expect your circumstances to change significantly in the coming years, it may also be worth considering how flexible the arrangement will be for your future plans.
The right decision depends on your individual circumstances, financial position and longer-term objectives. Taking time to understand the complete arrangement rather than concentrating solely on the smaller initial mortgage can help you make a more informed choice.
Arranging shared ownership mortgages can involve more than a conventional mortgage application because you need to satisfy both the requirements of the Shared Ownership provider and the lender financing your share.
Mortgage lenders can differ in how they assess Shared Ownership applications, affordability and particular properties.
At ABC Mortgages, we’ll take the time to understand your income, deposit, proposed ownership share and property before researching suitable mortgage options from the lenders available to us.
We’ll explain how much deposit may be required, help you understand the mortgage application and guide you through the process from your initial enquiry towards completion.
If you are unfamiliar with Shared Ownership, we’ll also help make the mortgage side of the process easier to understand so you know what is happening and what information your lender requires.
Shared ownership mortgages are used to finance the share of a Shared Ownership property that you are purchasing. You usually pay a deposit towards your share, use a mortgage for the remaining amount required and pay rent to the housing provider on the percentage you do not own.
The deposit is usually calculated against the value of the share you are purchasing rather than the full property value. The amount required will depend on the lender, property and your individual circumstances.
There is no single minimum income that applies to every applicant. Your income needs to be sufficient to afford the mortgage, rent and other associated property costs, while you must also meet the relevant Shared Ownership eligibility requirements.
Yes. You normally make mortgage repayments on the share you have purchased and pay rent to the housing provider on the remaining share. Service charges and other property-related costs may also apply.
Yes. Shared Ownership is commonly used by eligible first-time buyers, although it may also be available to other applicants depending on their circumstances and the requirements of the scheme.
Usually, yes. Purchasing additional shares in your property is known as staircasing. How much you can purchase at a time and any associated costs will depend on the terms of your lease and Shared Ownership arrangement.
Many Shared Ownership properties allow you to staircase up to 100% ownership, although some properties may have restrictions on the maximum share you can purchase. It is important to check the terms of the particular property and lease.
Yes. Shared Ownership properties can be sold, although the process can differ depending on how much of the property you own and the terms of your lease. If you own less than 100%, you may need to contact the housing provider before marketing your share.
Whether you’re checking your eligibility, working out how much deposit you may need or have already found a Shared Ownership property, ABC Mortgages is here to help. We’ll take the time to understand your circumstances and proposed purchase before helping you explore suitable shared ownership mortgages from the lenders available to us. From understanding affordability and arranging your mortgage application through to answering questions as your purchase progresses, we’ll be here to guide you.
Contact ABC Mortgages today to speak with an experienced mortgage adviser about purchasing a Shared Ownership home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Important Information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances and will be agreed with you before proceeding, but we estimate it will be £395.
The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.