How do I Secure a Mortgage for a Shared Ownership Property

Step-by-Step guide: How to Get a Shared Ownership Mortgage

1. Check Your Eligibility

Before applying for a mortgage, you’ll need to make sure you’re eligible for shared ownership. 

• First-time buyers, although some applicants who own or have previously owned a home may be eligible.

• Have sufficient savings to meet the one-off costs of buying a shared ownership home, and access to capital or a mortgage to fund your share of the purchase.

• Have an annual household income of less than £80,000 or £90,000 per year in London. 

• Some homes also have geographical eligibility criteria (live or work connections), so it's important to check the listing page of the homes you're interested in.

For detailed information on eligibility and the application process, please refer to our am I eligible page.

2. Speak to a Specialist Mortgage Advisor

Shared ownership mortgages are a little different from standard home loans, so it’s essential to speak with a mortgage advisor who has experience with shared ownership schemes. We can recommend trusted mortgage advisors who understand the process and work with lenders that offer shared ownership products.

We do not provide financial advice, but these advisors will be able to provide you with information and guidance about shared ownership mortgages.  

These types of mortgages can differ from standard residential mortgages and may come with additional criteria or restrictions. For example, lenders may have specific eligibility requirements, limits on how much you can borrow, or conditions tied to your share of the property. 

A qualified advisor can help you understand these differences and find a mortgage product that works for your circumstances.

Your advisor will help you:

• Find a lender that offers shared ownership mortgages

• Determine how much you can afford to borrow

• Understand your monthly mortgage and rent payments

• Navigate the application process with confidence

3. Apply for a Mortgage in Principle

A mortgage in principle is a statement from a lender saying they’re willing to lend you a certain amount, based on your income, expenses, and credit history. 

Obtaining a mortgage in principle for shared ownership is an important step, as it shows us that you’re financially prepared and serious about purchasing your chosen shared ownership property. While it’s a strong indication that you may be able to proceed, it’s not a guarantee - further checks, including full credit assessments, will still take place later in the process. However, having a mortgage in principle can help strengthen your application and speed things up, giving you greater confidence when reserving your dream home.

Most lenders will offer a mortgage in principle free of charge, and it typically remains valid for between 60 and 90 days. Having this agreement ready early on ensures you can move quickly once you've found the right home through us. 

Starting your shared ownership journey with a mortgage in principle gives you a clear understanding of your budget, simplifies the buying process, and demonstrates that you're a committed and ready buyer.

You can use our budget calculator to give you an idea of what the monthly costs for a shared ownership home would be. This will help you to decide what share you can buy and what share will allow you to live comfortably. 

Working out your monthly outgoings can also help you to understand how much you can afford to pay and the share of the property you can afford to purchase. 

4. Submit Your Full Mortgage Application for Your Shared Ownership Home

Once you have received your mortgage in principle and successfully reserved your chosen shared ownership home with us, the next crucial step is to submit your full mortgage application. This is the formal process where the lender will assess your financial situation in greater detail before making a final mortgage offer.

When submitting your shared ownership mortgage application, you’ll typically need to provide a range of documents, including:

• Proof of income, such as recent payslips, P60s, and bank statements, to demonstrate your ability to meet monthly mortgage and rent payments.

• Proof of identity and address, including a valid passport or driving licence and recent utility bills or bank correspondence.

• Details of your financial commitments, such as any loans, credit card balances, or other regular outgoing expenses.
   

As part of the application process, the mortgage lender will also carry out a valuation survey on the shared ownership property you intend to purchase. 

Working with a shared ownership mortgage advisor who understands the specific requirements of buying through a shared ownership scheme can help speed up the process and ensure all your documents are accurately prepared. By providing the correct and up to date information quickly, you can move a step closer to securing your affordable shared ownership property and receiving your official mortgage offer.