Home News Main The Basics on Shared Ownership: What You Need to Know

The Basics on Shared Ownership: What You Need to Know

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If you’re having doubts about getting a mortgage, then don’t feel bad – it’s a problem we all struggle with, since the housing market seems to be rising and rising whilst it gets harder and harder to purchase a home. Mortgage lenders aren’t always the friendliest people – it’s a business investment for them, after all, and it needs to make financial sense.

Getting a mortgage is a serious financial decision (maybe one of the most serious ones you’ll ever make) but it can be done if you handle it the right way. Have you ever wondered what beneficial deals there may be for you? Here are the basics on shared ownership: what you need to know.


The scheme that the government came up with has many advantages, but you do need to show that you are qualified to apply. If your household income is £60,000 or less, then you are eligible. You’ll also need to prove that you are a first-time buyer; meaning you do not own any property now, or are renting at the moment from a council or housing association.

Buying more later

When you go for shared ownership, you do not own the home by yourself alone – you share it. However, it’s certainly possible to buy the full home and get the property under your name completely at a later date. The price you can pay for more shares of the home will depend on whether the price of the property has risen or fallen.

Ownership rights

If you do not own 100% of the ownership, you do not have the full rights to the house. This means that, unless you have bought up the full share, you can’t sell the house, or let it out. However, you will be able to sell your share of the house to someone else.

Some advantages

You’re able to climb the property ladder with limited means, provided you have the dedication to do so. You’ll also be able to save on rent and therefore save more.

Some disadvantages

The eligibility may be in question – since the requirements are quite strict – and since you don’t own the property outright, you have to ask permission for any changes you would like to make.

The best advantage for shared ownership when you apply for a mortgage is that you typically only need about 5% of the total value as deposit (whereas most other mortgages usually require more, often double or even triple than that), as a mortgage advisor Taunton from Open Vision Finance attests. The government is more than willing to help if you feel that the shared ownership scheme is right for you – the Help to Buy programme implemented by the government is a good start. It could very well be a dream come true.

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