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Home » Services » Mortgage Services » Shared Ownership Mortgages » Pros and Cons of Shared Ownership Mortgages

Pros and Cons of Shared Ownership Mortgages

Ciarán Power

Last Updated: February 2nd, 2024 at 6:38 pm

Table Of Contents


Embarking on the journey of homeownership is an exciting but complex process, and understanding all available options is crucial. Shared Ownership Mortgages present a unique opportunity for many, but like any financial decision, they come with their own set of advantages and drawbacks. This page will delve into the pros and cons of Shared Ownership Mortgages, providing a balanced perspective to help you decide if this is the right path for your homeownership dreams.

Key Benefits of Shared Ownership Mortgages

Shared Ownership Mortgages come with several advantages, particularly for those finding traditional routes challenging:

  • Lower Initial Financial Burden: With the option to buy a percentage of a property (as little as 25%), the initial deposit and mortgage are significantly reduced.
  • Flexibility in Ownership: You can increase your share over time through staircasing, making it a flexible option for those whose financial situation may improve.
  • Accessibility for First-time Buyers: These mortgages are especially beneficial for first-time buyers or those with limited savings, making homeownership more attainable.

Drawbacks and Limitations to Consider

However, there are also important drawbacks to consider:

  • Ongoing Costs: You are responsible for mortgage payments on your share and rent on the remaining share, which can fluctuate.
  • Restrictions on Property Rights: Limitations on selling or altering the property can be restrictive compared to full ownership.
  • Potential for Higher Long-term Costs: The process of staircasing to full ownership can sometimes end up being costlier and longer than initially expected.

Additional Considerations

Besides the clear pros and cons, there are other aspects to contemplate:

  • Market Fluctuations: The property’s value can impact both your share and the rent portion, which is subject to market conditions.
  • Resale Considerations: Selling your share of the property can be more complex than selling a wholly-owned property, potentially affecting your future mobility.
  • Impact on Future Property Purchases: Owning a share in a property may affect your eligibility for certain mortgage products in the future, especially if looking to move or buy another property.


Shared Ownership Mortgages present a blend of opportunities and challenges. They offer a more accessible route to homeownership but come with unique considerations that should be thoroughly evaluated. As you navigate these options, remember that our team at Green Mortgages is always available to provide detailed advice and support, ensuring your path to homeownership is as informed and smooth as possible.

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