Compare Shared Ownership Mortgages
Designed to help people who cannot afford to buy a property outright get onto the property ladder, shared ownership mortgages allow borrowers to buy a share in a property – usually 25-75%. You can compare the latest shared ownership mortgage rates below.
Featured Shared Ownership mortgages - Ordered by lowest initial rate
Buy to Let: For landlords purchasing a property for letting.
Discount: The interest rate rises and falls with the provider’s standard variable rate but is set at a lower discounted rate for certain period.
Fixed: The interest rate is fixed for a certain period – usually 1 to 5 years.
Offset: Mortgage interest payments are offset against any savings you may hold.
Tracker: The interest rate rises and falls with the Bank of England base rate.
Variable: The interest rate rises and falls with the provider’s standard interest rate (SVR).
The introductory rate of interest that you will pay for a certain period of time depending on the mortgage type and term.
The length of time that the initial interest rate applies to the mortgage.
This is the mortgage’s Annual Percentage Rate (APR): the interest rate that you will be charged on your mortgage including all charges such as arrangement fees.
The percentage of a property’s value for which the mortgage can be used.
Example: 75% loan to value = 25% deposit.
- Fee To
This is the fee that must be paid to the lender when you take out the mortgage.
If the fee charged is a % we have based the fee on a 150k mortgage.
Will your lender charge you for repaying the mortgage early?
Our service is free of charge but we may receive a commission from some of the companies we refer you to. These are displayed with a green ‘More Info' button. Listings with a brown 'Enquire' button refer you to an FCA regulated mortgage broker where we also receive a fixed fee.
About shared ownership mortgages
A shared ownership mortgage is a great way for people to get on the housing ladder if they cannot afford to take on the whole burden of repayments themselves.
These types of agreement work by allowing you to take a mortgage on only part of the house. A third party - usually a local council or housing association - buys the rest. Generally, your share can be anywhere from 25 to 75 per cent of the total value of the house. As well as the mortgage repayment on your part of the loan, you will pay rent on the remaining share.
As such, shared ownership mortgages can be particularly beneficial to first time buyers, those on a low income, people who want to buy a home as an individual rather than with a partner, or people whose current level of income is not guaranteed.
These schemes also allow people to buy a home in an area where they might not be able to afford to otherwise.
There is usually an option to increase your mortgage at a set time in order to buy the other stake holder out of their share. The idea is that by this stage you may have progressed in your earnings and can then afford the full repayment. This is known as a stepped option.
Some lenders offer 100 per cent loan-to-value ratios on your share of the property, meaning you won't have to pay a deposit.
You'll need to check with the local authorities in your area to see what schemes are currently on offer.
Click here for Know Your Money's guide to getting onto the property ladder.
Helpful links for mortgage issues
Gov.uk - The government website's 'Owning and renting property' page features information on a range of issues including buying and selling property, property regulations and taxes, and mortgage aid schemes.
HMRC - HM Revenue & Custom's Stamp Duty page tells you everything you need to know about the tax including reliefs, exemptions, payments and penalties.
Council of Mortgage Lenders (CML) - The CML's consumer information pages feature a host of information on buying a property and choosing and managing a mortgage.
Citizens Advice Bureau - Citizens Advice Bureau's 'mortgage problems' section offers help and advice to people who are having trouble keeping up with their mortgage repayments.