Shared ownership mortgages

Because shared ownership is aimed at people who can’t afford the mortgage on 100% of a home, there are income limitations on applying. Your household income has to be less than £80,000 if you live outside of London, and less than £90,000 if you live inside London.

You also have to:

• Be a first-time buyer, or have owned a home but can’t afford one now
• Live in the property and not rent out any part of it
• Have the permanent right to live in the UK

You must be 18 years old or over to apply for a mortgage. Any mortgage you apply for is subject to status and availability.

Buying a share of a home

Shared ownership is a way to buy a share of a property that you want to live in. It’s something you arrange with a local Help to Buy agent – which we’ll explain in detail shortly. The 3 main points are:

• You buy between 25% and 75% of the property from a housing association
• You pay mortgage for your share and pay rent on the remainder to the housing association
• You can buy a larger share later at a price based on the value of the property at the time

Things to consider

• Shared ownership schemes are provided through housing associations - it’s not the same as buying a property with a friend or relative
• You need to find a shared ownership property in the area you want to live – try the contacts for your region further down the page
• If you’re eligible for the scheme, you can apply for any of our standard mortgages to buy your share
• You’ll have to show us that you can afford the mortgage repayments and rent, and provide a deposit
• You can buy a larger share of the property until you own it outright
• If property prices go up, you’ll pay more for increasing your share – but if they fall, you’ll pay less
• If you’ve bought the remaining share and want to sell your home, the housing association has the first option to buy it back for 21 years after you reach 100% ownership

What to do next

To buy a home through a shared ownership scheme, you’ll need to contact the Help to Buy agent in the area you want to live:

England (London): Share to Buy – First Steps

England (outside London): Help to Buy

Northern Ireland: Co-ownership

Scotland: Housing for shared ownership

Wales: Search the web for housing associations in your area.

They’ll guide you through the process and will need to confirm to us that you’ve been approved to take part in the scheme if you decide to apply for one of our mortgages.

The government’s Help to Buy website provides more information about how shared ownership could work for you. This includes additional schemes for people aged 55 and older and people with disabilities, plus priority for people in the armed forces and those currently renting from councils and housing associations.