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Home » Services » Mortgage Services » Shared Ownership Mortgages » What is a Shared Ownership Mortgage?

What is a Shared Ownership Mortgage?

Ciarán Power

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

Table Of Contents


Navigating the property market can be daunting, especially for first-time buyers or those with limited budgets. A Shared Ownership Mortgage offers an alternative route into homeownership. This page aims to thoroughly explain what Shared Ownership Mortgages are, detailing their structure, eligibility criteria, and suitability.

Understanding the Basics

Shared Ownership Mortgages are designed to make homeownership more accessible. You buy a portion of a property – typically 25% to 75% – and pay rent on the remaining share, which is usually owned by a housing association. This model significantly lowers the initial deposit and mortgage required, compared to buying a home outright.

Eligibility and Process

These mortgages are generally targeted at first-time buyers, people with lower incomes, or those who can’t currently afford to buy a home on the open market. To qualify for a shared ownership property, you have to meet the criteria here.

It’s important to note that in some cases you may have to show that you live in, work in, or have a connection to the area where you want to buy the home. The application process often requires working with a housing association. They will assess your financial circumstances to determine what share of a home you can buy and what rent you can afford on the remaining share.

Flexibility and Affordability

The primary benefit of Shared Ownership is its affordability and flexibility. It enables buyers to start with a smaller stake in a property and increase their share over time – a process known as ‘staircasing.’ This flexibility can make homeownership achievable and more manageable financially. Additionally, as you buy more shares, the rent on the remaining share owned by the housing association decreases.


Shared Ownership Mortgages can be a stepping stone to full homeownership, offering a tailored solution for those who may not have large deposits or high incomes. It’s an innovative way of bridging the gap in the housing market, making property ownership a reality for more people. If you’re considering this route and need expert advice, our team at Green Mortgages is ready to assist. We can provide comprehensive guidance and support to help you navigate the complexities of Shared Ownership.

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