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Shared Ownership Mortgage

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Specialists in Shared Ownership mortgages

Whether you’re a first-time buyer, or have owned a property before, applying for a Shared Ownership mortgage can be a daunting prospect. 

We deal with hundreds of Shared Ownership mortgage applications each year and have the experience to help you navigate your journey to buying your dream home with Sovereign Network Group (SNG), or other Housing Associations in the UK.

Free consultation and affordability check

Once you have found a Shared Ownership development or home you want to apply for, please contact us for a free, no-obligation financial assessment. It takes around 10-15 minutes. 

We will take down basic information about you, your income, any financial commitments (such as loans and credit cards), and your deposit. We can answer any mortgage-related questions you may have during the call.

We’ll send the assessment to the Housing Association for consideration, and they will contact you directly to let you know if you’ve been successful or not.

01202 497975

Call our specialist team to find out if you're eligible for a Shared Ownership property!

What is Shared Ownership?

Shared Ownership is a home ownership scheme designed to help people who can’t afford a Standard Residential Mortgage for a home that meets their needs, to get onto the property ladder. Simply put, you buy a share of your home, rather than the entire property.

The mortgage you need to buy your share will be for a lower amount, which makes it more achievable for people with lower incomes or a small deposit. The remainder of your property will be owned by a housing association, who will charge you rent for the portion they own.

You can purchase either a new build home or a pre-owned “resale” property through a housing association that offers the Shared Ownership Scheme. You’ll need a minimum 5% deposit for the share being advertised.

Do I qualify for Shared Ownership?

There are a few criteria that you will need to fulfil in order to be eligible to buy a property through the Shared Ownership Scheme:

  • You must have a total household income below £80,000 (or £90,000 if you live in London).
  • You don’t own another property anywhere in the world (although you can apply if it is sold subject to contract).
  • You must be 18 years or older.

For some properties, you may need to be living or working in the local area (a “local connection”) to apply.

How do I get a Shared Ownership mortgage?

With a Shared Ownership home, your mortgage will need to cover the percentage of the property that you can afford to buy; usually between 25% and 75% of the property value (although there are a few homes that start at a 10% share). 

The higher the share you buy, the lower the rent you’ll pay to the Housing Association.

If your application for a property is successful, the next step 

Do you charge fees?

We charge a reduced flat rate of fees for our Shared Ownership customers.

·       £199 Application Fee, payable when we submit a mortgage application to a lender.

·       £199 Offer Fee, payable when we receive a mortgage offer from the lender.

£398 in total.

The Offer Fee is only charged to you once (a “Lifetime Fee”). If you use our services again in the future, for a new purchase or remortgage for example, you will only be charged an Application Fee (based on our fee structure at the time of application).

We don’t charge anything for a Decision in Principle, or to switch products with your existing lender.

What are the advantages of Shared Ownership?

Smaller Deposits

Whilst there is a 5-10% deposit requirement, this will be calculated on your share of the property. For example, on a £300,000 home, the usual deposit would be around £15,000-£30,000. 

If you purchase 25% of the property, the purchase price is reduced to £75,000, making the deposit requirement as low as £3,750 – £7,500.

Less Debt

Whilst you will have a monthly rent payment and service charge to consider for your home, the amount of debt that you take on is only a small percentage of the cost, leaving you less vulnerable to debt issues, should your circumstances change.

Shared Liability

As the housing association retains ownership of a percentage of the property, this means that they share liability with you. All Shared Ownership properties will be leasehold for this reason, but it will be possible to transfer to freehold, should you purchase the entire property.

Housing Association Support

The new scheme rules introduced in 2021 outlines that the landlord will provide support with the costs of any essential repairs required to the property within the first ten years of ownership.

Frequently Asked Questions

Need more information? Our FAQ document covers the questions we are commonly asked about buying a shared ownership home, from start to finish.

Emma Louise Williams

I cannot express the quality of service received as a first time buyer from Luke at Heritage Mortgages. No query to big or small, with quick responses alongside an exemplary level of service, Luke secured a great result during the pandemic so I could purchase my beautiful new home. Great market knowledge surrounding self-employed earnings was clearly evident and secured the desired result. Thank you!

Joshua Flint

Annabelle is a top notch Mortgage broker. She took a year of silly questions, being stupid and setbacks from me and she stuck by me and got me my mortgage on my first home. She’s an excellent person who just thoroughly loves her job and wants to see people happy in their homes. Could not recommend anyone higher! Thank you Annabelle.

Chloe Club

Highly recommend Annabelle, she is a fantastic broker, she sorted our remortgage in a flash! My hubby and I were concerned about the process due to him being self employed but Annabelle got us a DIP in no time at all, a mortgage offer within days and I’m happy to say we’ve just completed. We couldn’t be happier with the service we received, it was faultless – thank you! So if you are reading this and like us you are hesitant about speaking to a broker I’d say just do it, Annabelle took away all the stress and got us a great deal. ?

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