| Shared ownership share | Usually 10–75% on new leases |
|---|---|
| Household income cap (England) | £80,000; £90,000 in London |
| Deposit | Often 5–10% of your share |
| Staircasing | Buy more shares over time |
| Right to Buy | Discount for eligible council tenants |
| Regulation | FCA-regulated residential mortgage |
Who is this for?
- First-time buyers who cannot afford a full purchase
- Former homeowners who meet scheme rules
- Council tenants eligible for Right to Buy
- Housing association tenants with a Right to Acquire
- Shared owners who want to staircase or remortgage
How does a shared ownership mortgage work?
You buy a share of a home from a housing association or provider, and pay rent on the share you do not own. A mortgage funds your share, with a deposit usually of 5–10% of that share. You also pay any service charge.
Under the model lease used for most new shared ownership homes in England, the minimum initial share is 10%. Lenders assess affordability on the mortgage, rent and service charges together. In England, household income must usually be £80,000 or less, or £90,000 or less in London.
Shared ownership homes are sold through housing associations and other registered providers. Each provider runs its own eligibility and affordability checks before you apply for a mortgage, so you may complete two assessments.
What is staircasing?
Staircasing means buying more shares in your home, reducing the rent you pay. You can usually staircase up to 100%, though some homes in rural areas have limits. Each new share is priced at current market value, based on a valuation.
Newer leases allow small 1% increments for a set period, with reduced fees. Larger staircasing usually needs a further advance or a remortgage. Fees for valuation and legal work apply.
When you reach 100% ownership, you usually own the home outright on the same lease, or the freehold for some houses. Rent stops, though service charges may continue.
How does Right to Buy work?
Right to Buy lets eligible council tenants in England buy their home at a discount. You need to have been a public sector tenant for a qualifying period. The discount depends on how long you have been a tenant and the property type, subject to a cash cap.
Discount caps were sharply reduced in November 2024, and the government has announced further reforms. These include a longer qualifying period and lower percentage discounts, subject to legislation. Check the current rules with your council before applying. Right to Buy has ended in Scotland and Wales.
What should I know about Right to Buy mortgages?
Lenders typically lend against the discounted price or a percentage of the market value. Many treat the discount as your deposit. Not all lenders offer Right to Buy mortgages, and some restrict lending on ex-council flats in high-rise blocks or certain construction types.
If you sell within five years, you may have to repay some or all of the discount. Leasehold flats can also carry significant service charges and major works bills.
What extra costs come with shared ownership and ex-council homes?
Beyond the mortgage, budget for rent on the share you do not own, service charges and ground rent where applicable. Rent usually rises each year under the lease. Under the newer model lease, providers cover the cost of certain repairs for the first ten years of a new-build home.
Ex-council flats bought under Right to Buy may face major works bills, such as roof or window replacements, shared among leaseholders. Ask the council for details of planned works before buying. You may also pay stamp duty, legal and valuation fees. Shared owners can usually choose to pay stamp duty on their share or on the full market value; your solicitor can explain which suits you.
Are there other schemes I should know about?
Other routes include First Homes in some areas, Rent to Buy and Right to Acquire for some housing association tenants. Availability and rules differ by area and provider. Our first-time buyer page also covers 95% mortgages and family support.
We help you understand the rules and choose a lender that accepts the scheme. Scheme eligibility is decided by the provider or council, not by OMB.
How we arrange it
- Free 15-minute call about the scheme and your budget
- Check eligibility and lender options
- Mortgage in principle for your share or discounted price
- Application, valuation and provider liaison
- Completion, with staircasing reviewed later
Example cases
Illustrative examples based on the type of case we arrange. Not specific clients; every case is different.
£157,500 shared ownership mortgage in Lewisham for a 40% share
£150,000 Right to Buy mortgage in Birmingham for a long-term council tenant
£220,000 staircasing remortgage in Bristol to buy the remaining 50% share
From the blogShared ownership: 6 questions to ask before you buy
Read the articleFrequently asked questions
Can I get a mortgage for shared ownership?
Yes. A smaller group of lenders offer shared ownership mortgages. They assess affordability using your mortgage payments, rent and service charges. Deposits are usually 5–10% of the share you buy. Lenders also check the lease meets their requirements. We know which lenders currently offer these mortgages.
What is the minimum share in shared ownership?
For most new shared ownership homes in England under the current model lease, the minimum initial share is 10%. Older schemes often started at 25%. The maximum initial share is usually 75%. Buying a larger share means a bigger mortgage but lower rent.
Can I sell a shared ownership home?
Yes. The housing provider usually has a period to find a buyer first, known as nomination. After that, you can usually sell on the open market. If you own 100%, you can usually sell like any other home, subject to any local restrictions.
Can I remortgage a shared ownership property?
Yes, you can remortgage your share to a new deal or to staircase. The lender must accept shared ownership, and the housing provider may need to approve the new mortgage. Valuation and legal fees usually apply. We check lender and provider requirements for you.
How much discount can I get with Right to Buy?
It depends on your area, how long you have been a tenant and whether it is a house or flat, subject to a maximum cash cap. Caps were reduced significantly in November 2024, and further reforms are planned. Your council will confirm your discount.
Can I use the Right to Buy discount as a deposit?
Many lenders treat the discount as equity, so you may not need a cash deposit. Some lenders lend up to the full discounted price, while others limit lending to a percentage of market value. You still need to pass affordability checks.
Do I have to repay the Right to Buy discount if I sell?
If you sell within five years, you may have to repay some or all of the discount. The amount reduces each year. There may also be restrictions on who you can sell to in some areas. Check your council's terms.
Can a family member help me with Right to Buy?
Some family members who live with you may be able to buy jointly, subject to council rules. Lenders may also consider a family member on the mortgage. Paying for someone else to buy your home through Right to Buy can breach scheme rules, so take legal advice.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice: up to 1% of the loan, typically £500.