Shared Ownership Mortgage FAQ
General information only. This is not financial advice.
Last reviewed: 2026-06-06
How does staircasing work in shared ownership?
Staircasing means buying additional shares in your shared ownership property over time. You can typically buy increments of 10% or more, up to 100% ownership (final staircasing). Each staircase purchase is based on a RICS valuation at that time — so if property values have risen, you pay more per additional share. Once you reach 100%, you no longer pay rent to the housing association. Some schemes have restrictions on staircasing to 100%, particularly older leasehold flats in certain areas where a resale covenant may apply instead.
Which lenders offer shared ownership mortgages?
Most major high-street lenders and building societies offer shared ownership mortgages, along with some specialist lenders. The mortgage is assessed on the share price you are buying, not the full market value, and you need a deposit based on the share (typically 5–10%). Lenders also include the rent payable to the housing association in their affordability calculation, alongside the mortgage repayment. A broker experienced with shared ownership will know which lenders offer the most competitive terms for your share percentage and income type.
What is a shared ownership resale covenant?
A resale covenant (or pre-emption right) is a clause in some shared ownership leases giving the housing association the right of first refusal to buy back the property or nominate a buyer when you come to sell. This can restrict your buyer pool and affect sale speed and price. Older shared ownership leases are more likely to contain these clauses. The 2021 model shared ownership lease (used in newer Affordable Homes Programme properties) has significantly relaxed or removed pre-emption rights. Your solicitor will identify any restrictive resale covenants during the conveyancing process.
How much deposit do I need for shared ownership?
You need a deposit of at least 5–10% of the share price — not the full open-market value. If you are buying a 40% share of a £300,000 property, the share costs £120,000. A 10% deposit is £12,000 rather than £30,000 (10% of the full value). This makes shared ownership significantly more accessible for first-time buyers with limited savings. However, remember that you also pay monthly rent to the housing association on the remaining share, which lenders include in their affordability assessment.
Is there an income limit for shared ownership?
Government-backed shared ownership in England requires household income to be below £80,000 (£90,000 in London) and applicants to be first-time buyers or previous owners who cannot currently afford to buy on the open market. Some housing associations set their own limits. There is no minimum income requirement, but mortgage lenders will apply their own affordability criteria. Scotland and Wales operate separate shared ownership schemes with different eligibility rules. Availability also depends on the specific development.
Can I get a shared ownership mortgage with complex or non-standard income?
Yes. Shared ownership lenders include those who accept complex income — self-employment, contractor day rates, bonus and commission, and multiple income streams. Because the loan amount is based on the share price rather than the full property value, the required borrowing is lower, which can make affordability more achievable for borrowers with variable income. A specialist broker can identify which shared ownership lenders are most suited to your income structure and share percentage.
Risk warning
Your home may be repossessed if you do not keep up repayments on your mortgage. Shared ownership properties are subject to lease terms — always review your lease with a solicitor before purchasing.
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