Shared Ownership Mortgages: Rates, How Much Can You Borrow & What to Expect
Your complete guide to getting a mortgage for shared ownership
Getting a mortgage for a shared ownership property works differently from a standard home purchase. Not all lenders offer shared ownership mortgages, the affordability checks are different, and the amount you can borrow relates only to your share — not the full property price. This guide covers everything you need to know.
How Shared Ownership Mortgages Work
With shared ownership, you take out a mortgage on the share you’re buying, not the full property value. For example:
- Property value: £300,000
- Your share: 25% = £75,000
- Your deposit: 5% of your share = £3,750
- Mortgage needed: £71,250
You then pay rent to the housing association on the remaining 75% (£225,000), plus a service charge.
This means your mortgage is significantly smaller than for a full purchase — but you have the additional monthly cost of rent.
Shared Ownership Mortgage Rates in 2026
Shared ownership mortgage rates are generally slightly higher than standard residential rates because:
- The property is leasehold (most shared ownership homes are)
- The mortgage is on a smaller share, which some lenders consider higher risk
- Fewer lenders compete in this market, reducing competitive pressure
As of early 2026, typical rates are:
| Mortgage Type | Typical Rate Range |
|---|---|
| 2-year fixed (shared ownership) | 4.5% – 5.8% |
| 5-year fixed (shared ownership) | 4.2% – 5.5% |
| Standard 2-year fixed (comparison) | 4.0% – 5.2% |
Rates change frequently. Always check with a mortgage broker for the latest deals.
Which Lenders Offer Shared Ownership Mortgages?
Not all high-street banks offer shared ownership mortgages. Lenders that commonly do include:
- Nationwide — one of the largest shared ownership lenders
- Halifax / Lloyds — wide range of shared ownership products
- Leeds Building Society — competitive rates for shared ownership
- Barclays — selected shared ownership products
- Skipton Building Society — specialist in affordable homeownership
A mortgage broker who specialises in shared ownership can search the whole market and often access deals not available directly.
How Much Can You Borrow?
Lenders typically offer 4 to 4.5 times your annual income for shared ownership mortgages. However, the actual amount depends on:
- Your income (single or joint)
- Existing debts and commitments
- The share percentage you’re buying
- Monthly rent and service charge obligations
- Your credit history
Borrowing Example
| Scenario | Amount |
|---|---|
| Annual household income | £35,000 |
| Maximum mortgage (4.5× income) | £157,500 |
| Buying 40% of a £350,000 property | £140,000 |
| Deposit (5% of share) | £7,000 |
| Mortgage needed | £133,000 |
| Result | ✅ Affordable |
The key difference from standard mortgages: lenders also factor in the rent and service charge you’ll be paying, which reduces the mortgage amount they’ll offer.
The Application Process
Step 1: Get a Decision in Principle
Before viewing properties, get a mortgage decision in principle (also called an agreement in principle). This tells you how much a lender is willing to offer and shows housing associations you’re a serious buyer.
Step 2: Housing Association Affordability Check
The housing association runs its own affordability assessment (separate from the mortgage lender). They check that your total housing costs don’t exceed approximately 45% of your net income. See our affordability guide for details.
Step 3: Full Mortgage Application
Once your offer on a property is accepted, you submit a full mortgage application. The lender will:
- Verify your income and employment
- Check your credit history
- Value the property
- Assess the lease terms
Step 4: Completion
Your solicitor handles the legal work. On completion day, the mortgage funds are released, and you become a shared owner. For help choosing a solicitor, see our guide to choosing a shared ownership solicitor.
Shared Ownership Mortgage vs Standard Mortgage
| Feature | Shared Ownership Mortgage | Standard Mortgage |
|---|---|---|
| Mortgage amount | Based on your share only | Based on full property price |
| Deposit | 5–10% of your share | 5–20% of full price |
| Interest rates | Slightly higher | Slightly lower |
| Additional costs | Rent + service charge | Service charge (if leasehold) |
| Lender availability | Fewer lenders | Wide choice |
| Lease requirements | Must have 80+ years remaining | Varies |
Remortgaging a Shared Ownership Property
You can remortgage your shared ownership home, but there are extra considerations:
- You need permission from the housing association (usually straightforward)
- The new lender must accept shared ownership leases
- If you’re staircasing at the same time, the remortgage can fund the additional share purchase
For a detailed guide, see our article on shared ownership remortgaging.
Tips for Getting the Best Deal
- Use a specialist broker — shared ownership mortgage markets are niche; a broker can find deals you won’t see online
- Improve your credit score — even small improvements can unlock better rates
- Save the largest deposit you can — higher deposits (10%+) may qualify for lower rates
- Consider the share percentage carefully — sometimes a slightly higher share results in a lower interest rate tier
- Compare the total cost — don’t just look at the mortgage rate; factor in rent and service charges too
Frequently Asked Questions
How much deposit do I need for a shared ownership mortgage?
Most lenders require a minimum 5% deposit on the share you’re buying. For a £300,000 property with a 25% share (£75,000), that’s just £3,750. Some lenders may offer lower deposits for specific schemes.
How long is a shared ownership mortgage term?
Shared ownership mortgage terms are typically 25 to 35 years, similar to standard mortgages. A longer term reduces monthly payments but increases total interest paid.
Can I get a shared ownership mortgage with bad credit?
It’s more difficult but not impossible. Some specialist lenders consider applicants with impaired credit. A mortgage broker can help identify suitable options. Improving your credit score before applying will give you more choices and better rates.
Can I overpay my shared ownership mortgage?
Most lenders allow overpayments up to 10% of the outstanding balance per year without early repayment charges. Check your specific mortgage terms.
Use our shared ownership calculator to estimate your monthly mortgage payments alongside rent and service charges. For eligibility checks and dual-income support, try the advanced calculator.