Shared Ownership Mortgage
Unlock Affordable Homeownership
Shared ownership mortgages offer an affordable way to step onto the property ladder, especially for first-time buyers. At Possible Mortgages, we specialise in making the shared ownership process simple and hassle-free, guiding you every step of the way.
What is Shared Ownership?
Shared ownership is a government-backed scheme that allows you to buy a share of a property (typically between 25% and 75%) and pay rent on the remaining portion. Over time, you can "staircase" to increase your ownership share, eventually owning the property outright.
Benefits of Shared Ownership:
Lower Initial Costs: Buy a share of the property instead of the entire home.
Easier Mortgage Approval: Smaller loans are easier to qualify for.
Flexible Ownership Options: Increase your share over time.
Access to New Build Homes: Many shared ownership schemes are available for modern, energy-efficient properties.
How Much Deposit Do I Need for a Shared Ownership Property?
The deposit required for a shared ownership property is calculated based on the share you are purchasing, not the full property value.
For example:
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If the full property value is £200,000 and you are purchasing a 25% share, your share would be £50,000.
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A 5% deposit on £50,000 would amount to £2,500.
This significantly lowers the upfront cost compared to buying the full property outright, making shared ownership an accessible option for many buyers.
Why Use a Mortgage Broker for Your Shared Ownership Mortgage?
6 Benefits of Using a Mortgage Broker
Expert Guidance
Mortgage brokers specialize in navigating the mortgage process, helping buyers understand options, terms, and requirements without jargon. Their expertise makes the journey smoother and less stressful.
Help with Complex Applications
If you have unique circumstances, such as being self-employed or having a low credit score, a broker can identify lenders with flexible criteria and advocate on your behalf.
Access to More Lenders
Unlike banks, brokers have access to a wide range of lenders and exclusive deals. This increases the likelihood of finding a mortgage tailored to your specific needs and circumstances.
Personalized Advice
Brokers offer tailored recommendations based on your financial situation, long-term goals, and preferences, ensuring you choose the best mortgage for your needs.
Save Time and Effort
A broker does the heavy lifting for you, comparing mortgage products, handling paperwork, and managing lender communication, saving you time and reducing hassle.
Better Mortgage Rates
Mortgage brokers often have access to exclusive rates and deals that aren’t available directly to the public, helping you secure a more affordable mortgage.
Document Checklist for Shared Ownership Mortgage
1. Proof of Identity
Lenders need to verify your identity. Provide one of the following:
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Valid passport
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Driving license (with your current address)
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National ID card (if applicable)
2. Proof of Address
Confirm your current address by submitting at least one of the following:
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Utility bill (dated within the last 3 months)
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Recent bank or credit card statement
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Council tax statement
3. Proof of Income
Your income will determine your affordability for a shared ownership mortgage. Gather the following based on your employment type:
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Employed Applicants:
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Last 3 months’ payslips
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Latest P60
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Employment contract (if recently started a new job)
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Self-Employed Applicants:
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Last 2-3 years’ tax returns (SA302 forms)
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Accountant-prepared financial statements
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Recent bank statements showing income deposits
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4. Bank Statements
Provide 3-6 months of bank statements to demonstrate:
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Regular income deposits
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Monthly expenses and financial commitments
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Financial stability
5. Proof of Deposit
Show evidence of your deposit, whether from savings, a gift, or a bonus. Acceptable documents include:
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Savings account statements
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Gift letter (if applicable)
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Documentation of any bonuses or other funds
6. Shared Ownership Scheme Documents
For shared ownership applications, you’ll need to provide:
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Shared ownership scheme application or agreement
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Eligibility certificate or reference from the housing association
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Details of the property share percentage you intend to purchase
7. Rent Information
Since you’ll be paying rent on the remaining share of the property, provide:
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Estimated monthly rent (provided by the housing association)
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Any additional service charges (if applicable)
8. Additional Documents
Depending on your circumstances, lenders may also request:
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Proof of additional income (e.g., rental income, dividends)
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Details of loans, debts, or financial commitments
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Information on other properties owned (if applicable)
9. Credit History
Lenders will check your credit score and history to assess your financial responsibility.
10. Conveyancer Details
You will need to provide your conveyancer's details when applyin forg a mortgage. Find your conveyancer here.
Mortgage Calculators
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Is there a fee for your service?Typically we charge a fee of £500 for arranging a mortgage, however the actual fee will depend on your circumstances and if more work is required then we could charge more than this but we will make you aware at the start of the process.
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What is the difference between paid and free brokers?You are about to make your largest purchase in your life. You want the best people on your team. We are the one for you. We are a customer-focused mortgage broker and will deliver the highest level of professionalism and service to your home buying journey. A free mortgage broker gets paid by the bank only and their advice might be biased towards banks that pay them a higher fee. Also, free mortgage broker often does not provide the same level of service and care to their customers as they need to write tons of mortgages to be profitable, which means they do not treat customer with the attention to detail and care you deserved.
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Is your mortgage advice impartial?This is what makes us different from other free online mortgage brokers. We never recommend a product based on how much the lender is compensating us. Instead, we provide professional and impartial mortgage advice to ensure you are treated fairly.
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Should I go with my bank directly rather than using a mortgage broker?Going directly with a bank means you will miss out on other cheaper lenders on the market. Using a mortgage broker often saves you money, and we will also help you relieve the stress of buying a home as we will handle all the research and paperwork for you.
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Are your mortgage brokers qualified and regulated?Our mortgage brokers are CeMAP qualified, and we are regulated under the Financial Conduct Authority (FCA). FCA number 1023518.
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What other services do you provide?We are a one-stop-shop for your homebuying journey. We provide protection (insurance) advise, and we also help you with conveyancing and survey for your home.
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Is your service available online or in person?We offer flexible consultation online or over the phone so you don't have to travel to our office.
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What is a first-time buyer mortgage?A first-time buyer mortgage is a home loan designed for individuals purchasing their first property, often featuring benefits like lower deposits and access to government schemes.
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How much deposit do I need as a first-time buyer?Typically, first-time buyers need a deposit of at least 5% of the property's value. However, a larger deposit can secure better mortgage rates.
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What government schemes are available for first-time buyers?Schemes like Help to Buy, Shared Ownership, and Lifetime ISAs assist first-time buyers in purchasing a home. Learn more in our Knowledge Hub.
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How much can I borrow for my first mortgage?Lenders typically offer 4.5 to 5 times your annual income. However you might able to borrow much more as a first-time buyer. Use our Affordability Calculator to estimate your borrowing potential.
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What is stamp duty, and do first-time buyers need to pay it?Stamp duty is a tax on property purchases. In some regions, first-time buyers are exempt up to a certain property value. Check current thresholds in our Knowledge Hub.
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How does my credit score affect my mortgage application?A higher credit score can improve your chances of mortgage approval and access to better rates. Learn how to boost your score in our Knowledge Hub.
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Should I choose a fixed or variable interest rate mortgage?Fixed rates offer consistent payments, while variable rates can fluctuate. Consider your financial stability and risk tolerance. Contact us for personalized advice.
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What additional costs should I budget for when buying a home?Beyond the deposit, consider expenses like legal fees, surveys, moving costs, and home insurance. Our Knowledge Hub provides a comprehensive list.
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How long does the mortgage application process take?The process typically takes 4 to 8 weeks, but this can vary. Start early to accommodate any delays.
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Can I get a mortgage with a low income?Yes, though your borrowing amount may be limited. Government schemes and lenders with flexible criteria can assist. Explore options in our Knowledge Hub.
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What is an Agreement in Principle (AIP)?An AIP is a lender's indication of how much they'd be willing to lend, based on your financial situation. It's useful when house hunting.
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Do I need a mortgage broker?While not mandatory, a broker can provide access to a wider range of deals and offer expert advice tailored to your needs. Contact us to connect with our experienced brokers.
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What is the difference between freehold and leasehold properties?Freehold means you own the property and the land it's on; leasehold means you own the property for a set number of years but not the land. Learn more in our Knowledge Hub.
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Can I use a gifted deposit for my mortgage?Yes, many lenders accept gifted deposits, typically from family members. Proper documentation will be required.
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What is a mortgage in principle, and how does it differ from a formal offer?A mortgage in principle is an initial estimate of what you can borrow; a formal offer is a binding agreement from the lender after full assessment.
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How does being self-employed affect my mortgage application?Self-employed applicants may need to provide additional proof of income, such as tax returns and business accounts. Our Knowledge Hub offers detailed guidance.
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What is Loan-to-Value (LTV) ratio?LTV is the percentage of the property's value that you're borrowing. A lower LTV can lead to better mortgage rates. Calculate your LTV with our Mortgage Calculator.
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Can I make overpayments on my mortgage?Many mortgages allow overpayments, which can reduce the loan term and interest paid. Check for any early repayment charges.
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What happens if my mortgage application is declined?If declined, assess the reasons, improve your financial situation, and consider seeking advice from a mortgage broker. Contact us for assistance.
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How do I choose the right mortgage term?Shorter terms mean higher monthly payments but less interest over time; longer terms have lower payments but more interest. Use our Mortgage Calculator to compare options.