Shared Ownership Mortgages
A shared ownership mortgage is a loan on the share you buy, not the whole home, but the lender still tests whether you can afford the mortgage, the rent on the rest and the service charge together. Lenders also disagree on the smallest share they will accept, which matters now that new homes can be sold at 10 per cent.
- The minimum share each lender will lend on
- How rent and service charge reduce what you can borrow
- New model and older leases, and why lenders care
- Staircasing, resale and remortgaging later
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Share the price, the share percentage, the monthly rent and service charge, and the housing provider. We will tell you which lenders will lend on that share and what the combined monthly cost looks like, with advice built around your circumstances rather than headline rates.
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How a shared ownership mortgage works
You buy a share of the home from a housing association or other registered provider and pay rent on the share you do not own. The mortgage covers your share only. On a £300,000 home bought at a 40 per cent share, the share costs £120,000, and a 5 per cent deposit on that share is £6,000 rather than £15,000 on the full price.
The lender is not lending on a smaller version of an ordinary mortgage. It takes a charge over the whole lease, and the housing provider has rights in that lease that come before or alongside the lender's. That is why the lender list is shorter than for an outright purchase and why each lender sets its own rules on shares, providers and lease terms.
Homes sold under the newer model lease, funded from April 2021, can be bought from a 10 per cent share, carry a lease of at least 990 years, give you a ten-year period in which the landlord covers the cost of eligible repairs, and let you buy an extra 1 per cent a year for fifteen years. The government's shared ownership guidance, last updated in September 2026, sets out the model. Older leases usually started at 25 per cent with shorter terms and none of those features. Our shared ownership guide explains the scheme itself; this page is about the mortgage.
Eligibility for the scheme is set by the provider, not the lender. In England household income is generally capped at £80,000, or £90,000 in London, and you must be unable to buy a suitable home outright. The lender then applies its own underwriting on top.
The headline deposit saving is real. The monthly saving is smaller than people expect, because the lender adds the rent and the service charge to your commitments before it decides how much you can borrow.
At a Glance
Shared ownership lender criteria compared
From each lender's own published criteria, checked 11 October 2026. Criteria change without notice, so treat this as the starting point for a conversation rather than a guarantee of acceptance.
| Lender | Share accepted | Maximum loan | Points to know |
|---|---|---|---|
| Leeds Building Society | 10% to 75% of the property | Up to 95% of the share value | A minimum £2,500 deposit applies where the share is between 10% and 24.99%. Registered housing associations only, and the lease must allow staircasing to 100%. Exposure limits apply per development |
| Nationwide | Minimum 25% as published | Up to 90% of the share value | Rent is treated as an outgoing in affordability. A Co-Operation Agreement is needed with the provider. Capped staircasing, for example at 80% in some rural areas, is considered. Additional borrowing to staircase is allowed |
| Santander | 25% to 75% (50% to 75% in Northern Ireland) | Up to 90% LTV | Registered providers only, and the scheme cannot be combined with another. Rent is entered as expenditure. The lease must allow staircasing to 100%, and any minimum staircasing tranche must be no more than 25%. Remortgages to buy more shares up to 90% LTV |
Shares below 25% are where lender choice narrows most. Several mainstream lenders still publish a 25% minimum even though new model homes can be sold at 10%.
What decides whether you are accepted
Affordability on the full monthly cost. The lender adds the rent on the unowned share and the service charge to your committed outgoings, then works out what is left to support the mortgage. Rent on new leases can be set at up to 3 per cent a year of the provider's retained share and rises each year, so a larger share often improves affordability as well as reducing rent.
The provider. Most lenders accept registered housing providers only, and some want a formal agreement with the provider before they will lend. A home sold by an unregistered landlord as 'shared ownership' is a different product and usually not acceptable.
The lease. Lenders check the lease length, the staircasing terms, any cap on how far you can staircase, the resale nomination period and who is responsible for repairs. Resale homes on older leases with less than about 80 years left can be difficult, and our guide to freehold and leasehold explains why.
Your credit and deposit. High loan to value lending is less forgiving of recent missed payments. If there is something on your file, our page on shared ownership with bad credit covers the lenders that take a wider view. A gifted deposit from family is widely accepted with the usual evidence.
The building. Flats in taller blocks need the same building safety evidence as any other flat, and service charges that are high relative to value can lead a lender to decline.
Run the combined figure before you reserve: mortgage plus rent plus service charge. If that number is close to your current rent, a larger share or a different home may be the better decision.
Where to go next
The pages most often read alongside this one.
How we arrange a shared ownership mortgage
Matching the share, the lease and the provider to the right lender is most of the work.
Understand the home
The share, the price, the rent, the service charge, the provider and whether the lease is new model or older.
Run the full affordability
Mortgage, rent and service charge together, so the share you choose is one you can sustain.
Shortlist the lenders
Lenders that accept the share size, the provider and the lease terms on that development.
Agreement in principle
Most providers ask for a mortgage assessment before they confirm your application. We prepare it.
Application to completion
We submit, deal with the valuer and underwriter, and keep the provider and your solicitor updated.
Read more before you buy a share
Related pages for shared owners and first-time buyers.
Buying a shared ownership home?
Send us the share, the rent and the service charge. We will tell you which lenders will lend on it and what the total monthly cost comes to.
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Shared Ownership Mortgages: Frequently Asked Questions
How does a shared ownership mortgage work?
You take a mortgage on the share of the home you are buying and pay rent to the housing provider on the rest. The lender assesses the mortgage, the rent and the service charge together when deciding how much you can borrow.
What is the minimum share I can buy?
Under the newer model lease the minimum initial share is 10 per cent. Older leases usually started at 25 per cent. Lenders set their own minimum too: Leeds Building Society lends from a 10 per cent share, while Nationwide and Santander publish a 25 per cent minimum.
How much deposit do I need for shared ownership?
Usually 5 to 10 per cent of the share you are buying, not of the full price. Leeds Building Society lends up to 95 per cent of the share value with a minimum £2,500 deposit on shares below 25 per cent. Nationwide and Santander lend up to 90 per cent.
Is the rent counted when the lender assesses affordability?
Yes. The rent on the share you do not own is treated as a committed outgoing, alongside the service charge. That reduces the maximum mortgage compared with buying the same share outright.
Can I get a shared ownership mortgage with bad credit?
Sometimes, but the lender list is shorter than for clean credit. It depends on what happened, how recently and how large the share is. Our page on shared ownership with bad credit covers the lenders that consider it.
Do all lenders accept shared ownership?
No. Fewer lenders operate in shared ownership than in mainstream lending, and those that do set rules on the share size, the housing provider and the lease terms. A decline from one lender says little about whether another will accept it.
Can I buy a resale shared ownership home?
Yes, but you take on the existing lease, which may be an older one with a 25 per cent minimum share, a shorter term and no repair period. Lenders look closely at lease length on resales, so check how many years are left before you commit.
Can I remortgage a shared ownership property?
Yes. Many shared owners remortgage when a fixed rate ends, and some borrow more at the same time to buy further shares. Santander, for example, allows remortgages to buy an additional or final share up to 90 per cent LTV.
What happens to the mortgage when I staircase?
You either fund the new share from savings, borrow more from your existing lender, or remortgage to a new lender for a larger amount. Each step usually needs a fresh valuation. Our staircasing page explains the options.
Can I use shared ownership to buy a buy to let?
No. Shared ownership is for owner-occupiers, and subletting is generally restricted by the lease. If you later staircase to 100 per cent, the position changes and some lenders will then consider letting it.
Written and reviewed by Osman Emin, CeMAP, mortgage and protection adviser · FCA register OCE01003 · Updated YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.