If you can’t save up a large enough house deposit or borrow enough to buy a home, the government’s Shared Ownership scheme could offer a solution.
You’ll purchase a share of the home that you can afford, and you’ll pay rent on the part you don’t own. Rent is usually paid to a housing association. Over time, you can staircase you way up to full ownership by buying more of the property in minimum 10% increments.
Not every mortgage is for everyone. Here’s some things you should know before applying.
Get on the ladder with a smaller deposit
As you’re buying a smaller share of the property, you don’t need a deposit for the entire house value. So you can get on the ladder without spending years saving up a deposit.
Afford a more expensive property
Unlike with a standard mortgage, you’re not limited to buying a home worth only 4-4.5x your income. With Shared Ownership, you could buy a share of a home with an extra room, a garden, or maybe even in a better location!
Build equity without buying the entire property
The portion of the home that you own will grow in value if the price of the property goes up. This will give you some equity that could help you buy more of the property.
Your household income must be £80,000 or less
If you’re buying a Shared Ownership property in London, you cannot have a household income of more than £90,000 to qualify for the scheme.
Limited home choices
You can only purchase specific Shared Ownership properties from official Housing Associations.
You'll have to pay rent
You’ll have to pay rent on the portion of the property you don’t own. To qualify, you’ll need to pass affordability checks to ensure you can afford to pay the rent payments and buy more of the property over time.
Get into your very own home in 4 simple steps
We’ll check your eligibility for Shared Ownership and other buying schemes, then you’ll get a personalised mortgage recommendation including interest rates and repayments - all in under 10-minutes.
Book a call with our mortgage experts to complete the qualification process. We’ll cover any questions you might have about Shared Ownership and any other schemes.
Now it’s time to find a home! Your Tembo advisor will be on hand to support you during the house hunt.
Once you’ve found a property, we’ll prepare & submit your mortgage application. We’ll liaise with the developer or seller and your solicitors to ensure a smooth purchase.
Explore our other buying schemes to see alternative ways to get on the ladder
On your own
Purchase a new build home from a participating home builder with just a 5% deposit.See details
With a guarantor
Add some or all of a loved one’s earnings to your mortgage application as a guarantor to boost your budgetSee details
Unlock money from a loved one’s property to gift to you as part of or all of your house depositSee details
Confused about mortgages? Read our guides for expert tips on saving, buying and the market.
You can be snug in your very own home in 4 simple steps