First-time buyer mortgages Shared ownership
Shared ownership is similar to shared equity schemes except that you buy a share of your property and pay the rest on the remaining share. The mortgage will pay between 25% and 75% of the value of the property and the rest is paid for in rent to the housing association which owns the property.
What are the pros and cons of shared ownership schemes?
We have rounded up the benefits and pitfalls of shared ownership. If you want to learn more, read our full guide on shared ownership schemes.
- It can help you to get a step onto the property ladder
- You can buy additional shares until you own your property outright
- May be cheaper than renting
- You can sell your property at any time and will benefit from any increase in value since you purchased your home
- There may not be properties in your preferred location
- You may be charged valuation fees if you buy additional shares
- You have to pay a service charge. This charge could also apply even if you own your property outright
- There is a risk of the property decreasing in value
How do I apply for a shared ownership scheme?
Need mortgage advice?
We believe you should seek independent mortgage advice before taking out a mortgage. The Which? Group offers an independent mortgage advice service, Which? Mortgage Advisers, that looks at every mortgage from every available lender. You can also find an independent mortgage adviser using Unbiased.co.uk.