HOLD Scheme Explained: Eligibility, Mortgages, and How to Apply

Finding a home that meets your needs is not always a straightforward or easy task, particularly if you are living with a long-term disability and are limited to standard shared ownership properties in your area.

The HOLD scheme was designed to help those who need access to the wider property market, allowing eligible buyers to find a suitable property on the open market and use a mortgage to purchase a share of the home through shared ownership.

In this article, we explain exactly how the HOLD housing scheme works, who is eligible, how to apply and what to expect when arranging a mortgage. Let’s begin.

What Is the HOLD Scheme?

HOLD stands for Home Ownership for People with Long-Term Disabilities. Unlike standard shared ownership, where you would typically choose from properties that are already available under the scheme, the HOLD scheme allows you to look for a suitable property on the open market with a greater focus on finding a home that meets your individual needs.

This wider market choice can be incredibly important when searching for a property. For instance, you may need to consider where it is located, accessibility, space for a carer, a particular type of property or whether you can stay close to family and an existing support network.

Crucially, you do not purchase the whole property yourself. A participating housing association will buy the home and you purchase a share of it which can be anywhere between 10% and 75% of the market price. This follows the usual shared ownership structure.

To purchase your share of the property, you will usually need a mortgage alongside your deposit. For example, if you buy a 25% share of a £200,000 home, you are purchasing £50,000 of the property and would secure a mortgage to cover the amount that is not funded by your deposit.

You would then make mortgage repayments on the amount you borrow and pay rent to the housing association on the remaining 75% share.

Put simply, the HOLD scheme helps people with long-term disabilities access homeownership with a greater choice over the location and type of property they purchase.

Who Is Eligible?

You may be eligible for the HOLD scheme if all of the following apply:

• You have a long-term disability as defined by the Equality Act 2010.
• You cannot find a suitable property through standard shared ownership. This can be because available homes do not meet your needs or are too far from your existing support network.
• Your total household income is £80,000 a year or less (£90,000 or less if you live in London).
• You cannot afford the full deposit and mortgage payments needed to buy a suitable home.
• A housing provider offering HOLD operates in the area where you want to buy.

In addition, at least one of the following statements must also apply:

• You are a first-time buyer.
• You previously owned a home but cannot afford to buy one now.
• You are forming a new household, such as following a relationship breakdown.
• You already own a shared ownership property and want to move.
• You currently own a home but cannot afford to buy another property that meets your needs.

It’s important to note that meeting the HOLD scheme eligibility does not guarantee that you will be able to purchase a home through HOLD. Instead, you must first apply through a housing association or provider that offers this scheme in your chosen area first.

They will assess your circumstances, housing needs and affordability before confirming whether you can proceed. The provider must confirm that you are eligible before you can begin searching the open market for suitable property.

As part of this assessment, you will usually need to provide evidence of your long-term disability. Evidence could include a letter from your GP, hospital consultant, mental health or learning disability team, social worker or care team. Additionally, a letter confirming entitlement to PIP or another disability benefit can similarly be used as evidence.

Finally, your financial circumstances will also be assessed to make sure that buying through the HOLD scheme is affordable. Receiving benefits does not prevent you from qualifying. In fact, the government guidance on Shared Ownership states that HOLD applicants must not be disadvantaged or excluded because they rely on benefits or other support.

How Does the HOLD Shared Ownership Scheme Work?

It’s important to understand that access to the HOLD scheme requires the involvement and approval of a participating housing association. As such, you must first be accepted onto the scheme by a provider operating in the area where you want to live.

The provider will complete an independent assessment of your affordability and housing needs to ascertain whether you’re eligible. If accepted, the housing association will then also need to agree that any property you find and wish to buy is both suitable and meets their requirements before the purchase can proceed.

For a better look at how the HOLD scheme works in practice, let’s break it down into a simple step-by-step process:

1.   Being Approved by a Housing Provider

The first step to access the HOLD shared ownership scheme is to approach a participating housing provider for approval. They will assess your eligibility, housing needs and financial circumstances before confirming whether you can proceed.

2.   Calculating How Much You Can Borrow

Upon being approved, you will need to work out exactly how much you can afford and whether you require a mortgage.

For those who need a mortgage, the next step is to find out how much you may be able to borrow. A mortgage broker can help to review your income, including any benefits that may be accepted by lenders, alongside your available deposit and wider financial circumstances.

This can help establish a realistic property budget before you begin your search and start considering what percentage share you would be considering to purchase.

Depending on the housing provider, you may also need to obtain a mortgage agreement in principle before you can start searching for a suitable property.

3.   Finding a Suitable Property

Once you know your budget, you can begin searching the open market within the area covered by your housing provider. The property you find will still need to meet your housing provider’s requirements and agreed budget.

Finding a property does not mean you can make the purchase independently and you should work with your housing provider throughout your search to check whether a property can be considered under HOLD, before committing to the purchase.

4.   Getting the Property Approved

When you find a home you would like to buy, the housing provider will need to approve it. They will consider whether the property is suitable for your needs and whether it meets the requirements of the HOLD scheme.

The property will also need to be valued before the purchase can progress. This helps establish its market value and, in turn, the value of the share you will purchase.

5.   Arranging Your Mortgage

If you require a mortgage, you can then progress from your initial affordability assessment or agreement in principle to a full mortgage application.

The mortgage will be based on the value of the share you are purchasing rather than the full value of the property. The lender will also complete their own affordability and property checks before issuing a full mortgage offer.

6.   Completing the Purchase

Once everything is in place – the housing provider has approved the property and you have confirmation of a formal mortgage offer – the housing provider will purchase the home.

In turn, you will then complete the purchase of your agreed share under a shared ownership lease.

From completion, you begin making mortgage repayments on the amount you borrowed and will pay rent to the housing provider on the share they own. For example, should you own a 10% share, you will pay rent on the remaining 90%.

It is important to note that while you will only own a percentage of the property, it is still your home. As the leaseholder, you will have responsibilities for looking after the property and will need to follow the terms of your shared ownership lease.

Can You Use Support for Mortgage Interest (SMI) with HOLD?

For someone buying through HOLD, SMI can help towards the mortgage interest on the share you own. However, it cannot be used to fund your deposit or purchase your share of the property, and does not cover the rent you pay to the housing association on its remaining share.

Specialist routes may allow eligible buyers to use SMI to help cover monthly housing costs.

Here is how SMI works alongside a HOLD scheme purchase:

• Interest-Only Payment Coverage: SMI is a repayable government loan from the DWP that pays the interest portion of your mortgage directly to your lender.
• Qualifying Benefits: To apply for SMI, you need to be receiving a qualifying benefit, such as Universal Credit, Pension Credit, or income-related Employment and Support Allowance (ESA).
• Repayment Structure: Because SMI is a loan rather than a standard grant, interest is added to the total amount. You typically only repay the SMI balance when the property is sold or transferred.
• Broker Involvement: Not all standard lenders accept SMI income structures. You will need to work with a specialist broker who understands the unique lending criteria and how housing associations calculate your overall affordability.

How Do You Apply for the HOLD Scheme?

Start by finding a HOLD housing provider that covers the area where you want to live. You can contact the provider directly and ask to be assessed for the scheme. Below are a few organisations that provide HOLD or specialist support with the process:

• Advance Housing: provides HOLD shared ownership across a number of different areas in England. You can use their website to enquire about current availability and check whether applications are being accepted.
• Southdown: provides information and support for people interested in HOLD in Sussex, including details on the application process and the current availability.

Availability can vary by location and provider, and so it is important to check the current criteria and whether applications are being accepted before starting the process.

In your application, you may need to provide details about your long-term disability, housing needs, income, benefits, savings and available deposit. The provider may also require evidence of your disability and, should you need a mortgage, a mortgage agreement in principle.

Once your application has been assessed, the housing provider will confirm whether you have been approved to proceed through the HOLD scheme.

What Types of Property Can You Buy?

The HOLD scheme offers a huge amount of flexibility when it comes to the type of property you can buy. Depending on your individual needs and budget, you can consider all sorts of property types that are on the open market, including:

• House
• Bungalow
• Flat or apartment
• Maisonette

The crucial point is that whatever property you wish to purchase, it will need to be approved by your housing provider. If you require a mortgage, your lender will also need to be satisfied with the property before agreeing to lend against your share.

How Does a Mortgage Work With the HOLD Scheme?

The key point is that your mortgage relates only to the share of the property you are purchasing, rather than the full market value of the property. As such, your mortgage will be used to finance only your share of the property and will work separately from the share retained by the housing association.

In practice, you will pay a deposit towards your share and then use the mortgage to fund the remaining amount. Your monthly mortgage repayments are then made directly to the lender.

For example, let’s say that you purchase a 25% share of a £200,000 property with a 5% deposit on your share:

As the table demonstrates, your mortgage repayments are then based on the £47,500 borrowed, rather than the full £200,000 property value. You would then pay rent to the housing association on its remaining 75% share.

Mortgage requirements for a HOLD purchase will vary between lenders. Each lender has its own criteria for assessing your mortgage application, including which sources of income and benefits will be accepted. Specialist mortgage routes may also have additional eligibility requirements of their own.

Once you have been approved for the HOLD scheme, working with a mortgage broker can help you understand which lenders may be suitable for your circumstances. A whole-of-market mortgage broker can compare lenders whose criteria may match your circumstances, including how they assess any benefits you receive as part of your income, and help establish how much you may be able to borrow.

How Much Do You Need for a Deposit?

One of the main benefits of both the HOLD scheme and standard shared ownership is that the upfront deposit can be considerably smaller than when purchasing the same property outright.

Property prices can vary considerably depending on where in England you want to live. Using the latest regional house price data from the Office for National Statistics (ONS), we can demonstrate how much a 25% share and 5% deposit may cost across four different regions:

Please note that all figures are illustrative and use average regional property prices for June 2026, as published by the ONS.

As the table shows, even where the full property price is above £300,000, the deposit is only calculated against the value of the share you purchase.

For example, using the East of England average of £339,000, a 25% share would be worth £84,750 and a 5% deposit on that share would be approximately £4,238.

Naturally, the exact deposit you need will always depend on the property you choose, the share you purchase and your mortgage lender’s requirements.

What Other Costs Should You Consider?

As HOLD follows the shared ownership structure, many of the costs are similar to those involved with a standard shared ownership purchase. However, there can also be additional costs depending on the property you choose and your individual housing needs.

Upfront Costs:

• Deposit: You will need the initial deposit of between 5% and 10% of the share you are purchasing.
• Solicitor or conveyancing fees: You will need a solicitor or conveyancer to complete the legal work involved in purchasing your share and entering into the shared ownership lease.
• Mortgage costs: Depending on the lender, you may need to pay fees for arranging your mortgage or completing the lender’s property valuation.
• Stamp Duty Land Tax (SDLT): Depending on the value of the transaction and your circumstances, you may need to pay Stamp Duty when purchasing through shared ownership.
• Survey costs: You may choose to arrange an independent survey to understand the condition of the property before completing your purchase.
• Moving costs: You should also account for any removals, travel, and any other expenses involved with moving into your new home.

Ongoing Housing Costs:

• Mortgage repayments: If you have a mortgage, you will be required to make regular repayments directly to your lender.
• Rent: Following the shared ownership payment structure, you will need to pay rent to the housing association on the percentage of the property you do not own.
• Service or estate charges: Depending on the property, you may need to contribute towards communal areas, building services, insurance or estate maintenance.
• Repairs and maintenance: Your exact responsibilities will depend on the property and the terms of your shared ownership lease, but it is important to understand what you will be responsible for before purchasing the property.

Finally, it’s important to consider whether the property will require any work or adaptations to meet your long-term needs. This could include improved access, ramps, wider doorways or alterations to bathroom facilities.

In some cases, financial support may be available. For example, eligible homeowners in England can apply for a Disabled Facilities Grant through their local council to help fund certain changes that would make their home easier to access and live in.

How Can a Mortgage Broker Help You Buy a Home?

Finding the right mortgage for a HOLD purchase can have a few more steps and considerations than a standard mortgage, especially as lenders can have different criteria around affordability and the types of income they accept.

A mortgage broker can help compare these requirements on your behalf, establish how much you may be able to borrow and ensure that you understand all the options that are available.

At Boon Brokers, our expert advisers have access to more than 90 lenders and can compare their criteria to find mortgage options that may be suitable for your HOLD purchase.

We can work with you once you have been approved by your housing provider, helping establish your borrowing potential, arrange your mortgage agreement in principle and progress your mortgage application once you have found an approved property.

All our mortgage advice is completely fee-free. You won’t pay us a penny for our advice or for arranging your mortgage. We’re here to help you find the right mortgage for you.