Pete Mugleston | Mortgage AdvisorPete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.
Updated: 20th January 2020 *
Many lenders offer Shared Ownership mortgages to customers looking for a more affordable way to get on the property ladder. Taking out a mortgage to share ownership of a property is something many first-time buyers are interested in knowing more about.
Applying for a mortgage is not without its caveats and some providers offer better or more flexible deals than others. This could hold particularly true if your situation changes and you’d like to get a mortgage on a bigger percentage of the property or sell the property.
In this article, we look at Shared Ownership providers and their terms and conditions. Of course, this is not a comprehensive market map, so it’s best to speak to an expert advisor with access to the entire market as early as possible.
Shared Ownership mortgage lenders: what you need to know
Most lenders offering Shared Ownership mortgages will only agree to a mortgage if you meet the following criteria:
Your household income doesn’t exceed £90,000 a year
You are a first-time buyer
You are having difficulty finding a property to buy on the open market
Generally, you’ll only be required to buy a minimum of 25% of the property. You can purchase up to about 75% of the property value. Several lenders only require 5% deposit and a couple will allow 0%.
You can buy further shares in the property if and when this becomes affordable later down the line. This process is known as “staircasing”.
The process of getting a Shared Ownership mortgage doesn’t have to be complicated. With expert advice, you’ll know which providers would be prepared to offer you a good deal and you’ll know you’re making a safe bet when taking out your mortgage.
For further information about Shared Ownership mortgages and the lenders that offer them make an enquiry and will introduce you to an expert who can help.
Which companies offer Shared Ownership mortgages?
Mainstream banks such as Barclays, Halifax, Lloyds TSB, and Santander offer Shared Ownership mortgages. There are also some specialist lenders which offer them, as well as building societies and other types of mortgage provider.
Are there Shared Ownership lenders in Scotland?
Yes. Whether you are based in Scotland, England, Northern Ireland or Wales, the expert mortgage advisors we work with have whole of market knowledge and can show you which shared ownership mortgage lenders are available for you.
Speak to a specialist mortgage broker to get whole-of-market advice and access to special offers that may not be easily visible or available through an online search.
How to find the best shared ownership mortgage brokers
The best way to ensure you get a good deal is to work with an all-of-market broker. Because they have access to the whole financial market, they can save you time by taking you straight to the best deals you are eligible for. They also have access to specialist Shared Ownership mortgages that can’t be found online, so you won’t be missing out on any ‘hidden’ deals.
Don’t forget that making too many applications in a short space of time could negatively impact your credit score, which could lead to being cut out from the best deals on the market. Working with an experienced broker who already knows which lenders are most amenable to arranging mortgages for Shared Ownership is the safest option for first-time buyers.
If you’d like to be put in touch with a broker who specialises in arranging new build mortgages, make an enquiry and we’ll put you in touch with someone shortly.
Which are the best Shared Ownership mortgage providers?
When it comes to which Shared Ownership mortgage providers are best to work with, the answer will vary according to your individual needs and situation. But taking the time to become fully informed by speaking to a whole of market broker will ensure you have your bases covered with due diligence done on mortgage providers.
In the following section, we’ll provide you with a brief list of some major Shared Ownership mortgage lenders and their terms at the time of writing.
Keep in mind that this section merely aims to offer a brief overview of the market for example purposes. Rates can change at any time so make an enquiry for the latest information and a more comprehensive market comparison.
Halifax Shared Ownership mortgages
Halifax offers a range of government backed initiatives including Shared Ownership mortgages, with schemes often offered by registered social landlords or local authorities.
Halifax does provide shared mortgage deals for as little as 25% of the property value and can allow you to change the arrangement to buy more shares in the property later on if you wish.
Barclays offers Shared Ownership mortgages for first-time buyers. To apply for a one, your combined income has to be under £80,000 if you live outside London, and under £90,000 if you live in London.
As with all mortgage products, there are a number of criteria and restrictions for applicants and these vary from one lender to the next. Speaking to a mortgage broker who can take you directly to matching lenders can save you time, hassle, and possibly bad credit.
Nationwide Shared Ownership mortgage
Natwest does provide Shared Ownership mortgages and you can apply in branch, on the phone, or online, although applying through a whole-of-market broker is recommended as they may be able to negotiate a more favourable deal for you or flag up an alternative lender who is a better fit for your needs and circumstances. The expert brokers we work with also regularly get offered exclusive rates that are not available by going direct.
It’s always advisable to first compare interest rates and terms and conditions with the whole market by speaking to an expert advisor before reaching for that application.
Santander shared ownership mortgage
Santander offers Shared Ownership mortgages and they’ve even brought out a standard new business range for potential customers.
However, the scope of scheme providers they work with is limited to those registered with the authorities listed below:
In England, the Homes & Communities Agency
The Welsh Assembly
The Northern Ireland Housing Executive
Northern Ireland Co-Ownership Housing Association
Scottish Housing Regulator
If you take out a Shared Ownership mortgage with Santander, they won’t provide loans for other purposes until you own 100% of the property.
Lloyds Shared Ownership mortgage
Lloyds offer Shared Ownership mortgages with scheme providers including social landlords or local authorities. With a Lloyd’s bank mortgage, you can scale up the percentage of the property you wish to buy and increase your mortgage. But you’ll have to take out the initial minimum mortgage of about 25% of the property value.
Leeds Building Society
Leeds Building Society offers Shared Ownership mortgages and you can apply online or over the phone. Their online mortgage calculator will help you get a decision in principle.
To find out which authorities or landlords the Leeds Building Society Shared Ownership mortgage works with, speak to an expert mortgage broker who can show you how their rates and range of partners compared to the wider market.
HSBC Shared Ownership mortgage
With an HSBC Shared Ownership mortgage, you can buy a share of a property and pay the registered social landlord or local authority less rent for the rest.
To be eligible for HSBC shared mortgages you need to:
Be a first-time buyer
Plan to live in the property
Have the right to live in the UK permanently
Not wish to rent out any part of the property
For further information on HSBC criteria and how this compares to other companies which do Shared Ownership mortgages, speak to an expert advisor.
Are there any other shared ownership lenders I should know about?
In addition to the Shared Ownership mortgage lenders listed above, the experts we work with can also advise you about the following lenders and will be able to help you decide which one of them is the right fit for your needs and circumstances.
List of other Shared Ownership mortgage lenders
How to apply for a shared ownership mortgage
Before applying, it’s best to seek out unbiased, independent advice when searching for who offers the best Shared Ownership mortgages. There are many providers throughout the UK who can help you get your foot on the property ladder, but they all come with their own set of criteria, requirements, and pros and cons. You’ll find further details in our guide to applying for a Shared Ownership mortgage.
An expert mortgage broker with sound working knowledge of the bigger picture can give you access to potential hidden deals, guide you to lenders who are a match for your situation, and ensure your credit rating is not negatively affected by your mortgage search.
We work with brokers who have specialist knowledge of the Shared Ownership mortgage market. Make an enquiry today and we’ll connect you to the right advisor.
Looking for a Shared Ownership mortgage lender? Apply through a whole-of-market broker!
If you’re looking for a Shared Ownership mortgage lender and could use some expert advice with no fee or obligations on your part, give us a call on 0808 189 2301 or make an enquiry online and we’ll get to work finding the best broker for you.
*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA.Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.
Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes.
The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.
Pete's presence in the industry as the 'go-to' for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!
Read more about Pete here...