Shared Ownership Mortgages

What is a Shared Ownership Mortgage?

A shared ownership mortgage allows you to buy a share of a property while paying rent on the remaining share to a housing association. It’s a very popular mortgage option for those looking for a more affordable way to get on the property ladder if buying outright isn’t possible right now. At Boon Brokers, our dedicated experts provide fee-free, whole-of-market mortgage advice that can help you find the mortgage option that is best for you.

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Submit an enquiry and await contact from one of our expert fee-free brokers.

Expert Advice

Your broker will listen to your shared ownership requirements and provide a proposal.

Mortgage Offer

Your broker will submit your application and await your mortgage offer.

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Is Shared Ownership Worth It for First-Time Buyers?

Yes, shared ownership can be a great option for first-time buyers who want to get onto the property ladder with a smaller deposit. It allows you to purchase a share of a home and pay rent on the remaining portion, making homeownership a much more affordable option. In truth, whether it is worth it will ultimately depend on your financial situation, long-term goals, and the property’s location.

What Are the Pros and Cons of Shared Ownership?

A main benefit of shared ownership schemes is that they offer a pathway to homeownership with lower entry costs compared to traditional mortgages. However, they come with rent payments on the unsold share, potential service charges, and restrictions on selling or subletting. Understanding both the benefits and drawbacks is essential before committing.

Is Shared Ownership the Same as Renting?

No. With shared ownership, you own a percentage of the property while paying rent on the rest. Unlike renting, you build equity in the share you own and have the option to increase your ownership over time, giving you a route toward full ownership.

Can You Eventually Own 100% of a Shared Ownership Property?

Yes. Some shared ownership properties allow for “staircasing”. This means you can gradually buy more shares of your home until you own it outright. This provides flexibility to increase your ownership as your financial situation improves.

However, it’s important to clarify this with your lender before agreeing to a shared ownership mortgage, as not all shared ownership schemes allow staircasing. Some shared ownership schemes will never allow full ownership or there may be a ceiling on the percentage you can own.

Do Shared Ownership Homes Increase in Value?

Yes, the share you own typically increases in value in line with the property’s market price. However, the rent on the unsold portion may also increase over time, so it’s important to factor this into your financial planning.