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Apply for a shared ownership mortgage with L&C

If you’re hoping to get on the property ladder with a shared ownership mortgage, L&C is here to help.

Our online Mortgage Finder will compare deals from across the market and show you which ones you could be eligible for, and our expert advisers will be able to assess whether a shared ownership mortgage is the right option for you. Once we’ve found the best deal for you, we’ll support you through the whole application process, so you could soon be unlocking the door to your new home.

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Finding the best shared ownership mortgage deal

If you’re struggling to save a large enough deposit, a shared ownership mortgage could be a great way to get on the property ladder.

When you buy a property through a shared ownership scheme, you typically purchase between 25% and 75% of the property, and a housing association will own the remaining share, which you pay rent on. From April 2021, you’ll be able to buy as little as a 10% share, which could make the scheme more affordable for those on limited incomes.

You can buy further shares in the property as and when you can afford to, using a process known as ‘staircasing’. Under current rules, you can buy a 10% share each time, but from April 2021, homeowners will be able to purchase additional shares of just 1% of the property value.

You’ll still need to put down a deposit when you take out a shared ownership mortgage, but this will typically be 5% or 10% of the share you are buying rather than a percentage of the full property value.

To be eligible for a shared ownership mortgage:

  • You must be aged 18 or over.
  • Your household income must be less than £80,000 if you live outside London, or less than £90,000 if you live in the capital.
  • You must be a first time buyer, a previous homeowner who now can’t afford to buy, or an existing shared owner who is looking to move.

If you’re not sure whether you qualify for a shared ownership mortgage, or which type of mortgage deal is best for you, get in touch with us today.

Shared ownership mortgage FAQs

How much mortgage can I get for shared ownership?

You can take out a mortgage for the share of the property you’re buying but you’ll usually need to put down a deposit of at least 5% of that share. For example, if you’re buying a property costing £200,000 and the share you’re purchasing costs £75,000, you’ll have to put down a deposit of at least £3,750 (5% of £75,000). You can find out more in our guide 'What are shared ownership mortgages?’

Can you get a 100% mortgage on shared ownership?

There may be some specialist lenders that could arrange a 100% mortgage, but the majority of lenders – and certainly all the high street ones – will require you to put down a deposit of at least 5%. Even if you can find a lender prepared to offer a 100% mortgage, your local authority may not accept it, so make sure you check with them first.

Do you need a deposit for a shared ownership mortgage?

You’ll usually need to put down a deposit of at least 5% of the value of the share of the property you’re buying. The bigger the deposit you can afford to put down, the wider the choice of mortgage rates you’ll have access to.

How do you apply for a shared ownership mortgage?

Several lenders offer shared ownership mortgages, so it’s a good idea to speak to one of our expert advisers, who’ll be able to talk you through all the available options and recommend the best deal based on your individual circumstances.