Shared ownership mortgage explained

Shared ownership lets you buy a share of a home, usually between 25% and 75%, with a mortgage and deposit on that share, and pay rent to a housing provider on the rest. Because your deposit and mortgage are based on the share, not the whole property, the cash needed to start is much lower. You can buy more shares over time, called staircasing, often up to full ownership.

How the money works

You take a mortgage on the share you are buying and put down a deposit on that share, then pay rent on the remaining portion you do not own. Because everything is scaled to your share, the deposit and mortgage are far smaller than buying the whole home outright, which is the point: it lowers the barrier to getting started. You will need a lender that specifically offers shared ownership mortgages.

Staircasing over time

As your finances allow, you can buy further shares in the property, known as staircasing, which increases the portion you own and reduces the rent. Each step needs a valuation and usually legal work, and some leases set a maximum share you can reach. Staircasing all the way can mean you eventually own the home outright.

Points to check

Common questions

How does shared ownership work?

You buy a share of a property, usually between 25% and 75%, with a mortgage and deposit on that share, and pay rent to a housing provider on the part you do not own. Over time you can buy more shares, known as staircasing, sometimes up to 100%. It lowers the deposit and mortgage you need to get started.

What deposit do I need?

Your deposit is a percentage of the share you are buying, not the whole property, so the cash needed is much smaller than buying outright. For example, a deposit on a 40% share is far less than a deposit on the full home.

What is staircasing?

Staircasing is buying additional shares in your home over time, increasing the portion you own and reducing the rent you pay. Each staircasing step involves a valuation and usually legal costs, and some leases cap the maximum you can own.

What should I watch out for?

Shared ownership homes are usually leasehold, so check the lease length, the rent and any service charges, and the rules on selling and staircasing. You also need a lender that offers shared ownership mortgages, which is a specific part of the market.

Compare with a 95% mortgage or Right to Buy.

AP

Adam Parker

Founder, MortgageExplained, MortgageExplained

Adam spent nearly a decade as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, then introduce you to a regulated broker when you are ready. Every page is written and reviewed by Adam.

Last reviewed: 29 June 2026

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