Shared Ownership Mortgage: Find a Lender & Scheme Advice

Montgomery Financial - Our Approach

Simple, Straightforward Approach

We specialise in making the mortgage process smooth and stress-free. From your first chat with us to getting the keys to your new home, we'll guide you every step of the way. Whether you're unsure how moving home works with an existing mortgage, or you're worried about borrowing enough -- we're here to help simplify it all, so you can focus on packing boxes and choosing paint colours.

Whole of Market Access

We search the entire mortgage market -- comparing thousands of products across over 100 lenders -- to find a deal that's tailored to your needs. Whether you're moving up the ladder or relocating, we make sure you're not missing out on better rates or terms elsewhere.

Dedicated Adviser and Case Manager

When you contact Montgomery Financial, you'll be assigned both a dedicated mortgage adviser and a dedicated case manager. That means one team guiding you from start to finish -- no call centres, no bouncing around between departments. We'll liaise with your lender, solicitor, and surveyor to keep things moving and reduce stress during your move.

Flexible Appointments That Work Around You

We know life gets busy. That's why we offer flexible appointments to fit your schedule -- whether it's during the day, in the evening, or even weekends. We're here when you need us.

Things to Consider with Shared Ownership Mortgages

You’ll still need to pay rent on the part you don’t own

You’ll need to budget for mortgage repayments and rent together

There are restrictions if you want to sell the property

Not all lenders offer shared ownership mortgages—finding the right one is crucial

You must apply through the correct housing association and meet eligibility criteria

Mortgage Calculator

Curious about the shared ownership mortgage repayments you’ll be looking at? Use our mortgage calculator to estimate what your monthly costs could be, including mortgage and rent.

The Buying Process Accordion

Step 1: Work out your deposit and how much you can borrow

Understanding your affordability is the first crucial step in the home-buying process. Most lenders will ask for a deposit between 5-10% of the purchase price, though some innovative products now offer 100% mortgages and 1% deposit mortgages for eligible first time buyers.

Your deposit directly affects the mortgage rates available to you. Generally, the larger your deposit, the better mortgage rates you'll be able to secure. However, don't let a small deposit discourage you - there are many options available for first time buyers, including government schemes designed specifically to help you get onto the property ladder.

When calculating how much you can borrow, lenders typically offer 4-4.5 times your annual income, though this can vary based on your financial situation and the lender's criteria. Our mortgage advisors will help you understand exactly how much you'll be able to afford, taking into account all your income and expenditure.

Step 2: Get a mortgage in principle (MIP)

A mortgage in principle, also known as an agreement in principle or decision in principle, is a conditional offer from a lender stating how much they're willing to lend you. This crucial document demonstrates to estate agents and sellers that you're a serious buyer with access to mortgage funding.

Our mortgage advisors can arrange your mortgage in principle quickly and efficiently, often within 24 hours. Having this in place before you start house hunting puts you in a stronger position when making offers and shows sellers you're ready to proceed with your purchase.

Step 3: Get house hunting

Once you know how much you can borrow and have your mortgage in principle, you can start searching for your perfect first home. Take your time during this process - finding the right property is crucial, and you don't want to rush into a decision you might regret.

Remember that your mortgage in principle typically lasts 60-90 days, so factor this timeframe into your property search. If needed, we can arrange a new agreement in principle to extend your searching period.

Step 4: Current First-Time Buyer Mortgage Rates and Market Trends

The mortgage market offers various products designed specifically for first time buyers, with competitive mortgage rates available across different deposit levels. Understanding the different types available helps ensure you select the best mortgage for your circumstances:

Fixed-rate mortgages offer stability with guaranteed repayments for a set period, typically 2-10 years. This predictability makes budgeting easier and protects you from interest rate rises during the fixed period.

Variable-rate mortgages fluctuate with market conditions and the lender's standard variable rate. While these can offer savings when rates fall, they also carry the risk of increased payments if rates rise.

Our mortgage advisors will explain all available options and help you choose the mortgage product that best suits your financial situation and long-term plans.

Step 5: Find a conveyancing solicitor

Conveyancing is the legal process of transferring property ownership. Choosing an experienced solicitor is essential for a smooth transaction. Our mortgage advisors can recommend trusted conveyancing professionals who specialise in first-time buyer transactions.

Your solicitor will handle all legal aspects of your purchase, including property searches, contract reviews, and the final exchange of contracts. They'll work closely with our team to ensure all mortgage requirements are met throughout the conveyancing process.

Step 6: Apply for a mortgage

Once you've chosen your mortgage product and found your ideal property, we'll submit your formal mortgage application to your chosen lender. This process requires detailed financial documentation, including bank statements, payslips, and proof of deposit.

Our mortgage advisors handle the entire application process, liaising with lenders on your behalf and keeping you updated every step of the way. We'll ensure your application is submitted accurately and promptly to avoid delays.

Step 7: Valuations and Surveys

Your chosen lender will arrange a valuation to confirm the property's worth matches the loan amount. This protects both you and the lender by ensuring the property provides adequate security for the mortgage.

We recommend considering additional surveys beyond the basic lender valuation. A homebuyer's survey or building survey can identify potential issues that might affect the property's value or require future repair costs.

Step 8: Get your mortgage offer

Receiving your formal mortgage offer is a significant milestone in your first home purchase. This legally binding document confirms your lender's commitment to provide the agreed mortgage amount, subject to the conditions specified.

Your mortgage offer typically remains valid for 3-6 months, providing sufficient time to complete your purchase. Our mortgage advisors will review the offer carefully with you, ensuring you understand all terms and conditions before proceeding.

Step 9: Exchange Contracts

Contract exchange is when your purchase becomes legally binding. Both you and the seller commit to completing the transaction, and a completion date is agreed. At this point, you'll typically pay a deposit (usually 10% of the purchase price) to the seller's solicitor.

Step 10: Completion & moving into your first home

Completion day is when you finally get your keys and become a homeowner! The remaining mortgage funds are transferred to the seller, final legal formalities are completed, and ownership officially transfers to you.

Our support doesn't end at completion. We'll contact you before your mortgage deal expires to ensure you continue getting the best rates available through remortgaging.

Understanding Shared Ownership Mortgage

What is a Shared Ownership Mortgage?

A shared ownership mortgage is a type of loan used to buy a portion of a shared ownership home. You take out a loan for your share, and pay rent on the rest to a housing association.

Benefits of Shared Ownership Schemes

Lower deposit required (5–10% of your share’s market value)

Great for first time buyers

You can get on the ladder sooner

Option to increase your share over time

Often more affordable than renting privately

Eligibility Criteria for Shared Ownership

You may qualify if:

Your household income is less than £80,000 (£90,000 in London)

You’re a first time buyer or don’t currently own a home

You can’t afford a home that meets your needs on the open market

You have a good credit score and a stable income

You pass affordability checks by the mortgage lender

Finding the Right Lender for Shared Ownership

Types of Lenders Offering Shared Ownership Mortgages

Not every mortgage lender will offer a shared ownership mortgage. Some high-street banks simply avoid them. Others offer competitive rates—but only if you tick all the right boxes.

How to Compare Lenders and Their Offers

We’ll help you:

Compare mortgage rates side-by-side

Understand mortgage terms and conditions

Look beyond the interest rate to spot hidden fees

Secure the right mortgage deal for your situation

Make sense of the mortgage process

Applying for a Shared Ownership Mortgage

Steps to Apply for a Shared Ownership Scheme

Check eligibility and register with a local housing association
Find a property available under the scheme
Reserve the home
Work with a mortgage broker to get the best mortgage offer
Submit all mortgage applications and documents
Complete the house buying process

Expert Mortgage Advice for First-Time Buyers

If you're a first time buyer, the shared ownership scheme could be your best chance to buy. But the wrong move can cost you. Let our expert mortgage advisors help you avoid rejection and navigate everything with confidence.

Common Mistakes to Avoid in Shared Ownership

Not using a broker who knows shared-ownership mortgages

Choosing a property without checking lender compatibility

Failing affordability checks due to poor financial prep

Not reading the lease terms or resale conditions

Assuming you can always buy more later—some schemes limit staircasing

Shared Ownership Mortgage FAQ

What is a shared ownership mortgage?

A shared ownership mortgage is a type of loan that allows you to purchase a share of a property--usually between 25% and 75%--while paying rent on the remaining portion. It's ideal for first time buyers who can't afford to buy a home outright and want to get onto the property ladder.

How does shared ownership mortgage work?

You apply for a loan to buy your share in the home, and pay rent on the part you don't own. Over time, you may be able to increase your share--and even gain full ownership of your home.

Are shared ownership mortgages easier to get?

Approval depends on your credit score, income, and the mortgage lender's criteria. A qualified mortgage advisor can help you find the right lender.

Which lenders do shared ownership mortgages?

Many lenders offer shared ownership, including specialist mortgage providers and some high-street banks.

Are shared ownership mortgages different?

Yes. Unlike a standard mortgage product, you're only borrowing against a portion of the property, and mortgage payments are combined with rent.

How much deposit do you need for a shared ownership mortgage?

Usually 5--10% of the share you're buying--not the full property value.

Are shared ownership mortgage rates higher?

Rates can be slightly higher due to perceived risk. A mortgage adviser can help you compare for competitive rates.

Is shared ownership a trap?

Not if you go in with the right advice. Get help from an experienced mortgage broker to avoid pitfalls.

Do shared ownership properties increase in value?

Yes, typically like any other home.

Do shared ownership properties sell quickly?

It depends on market and lease terms. Some homes may be harder to sell, others move fast.

Are shared ownership properties leasehold?

Yes, most are leasehold. Review terms carefully.

Do shared ownership properties allow pets?

Check with the housing association. Rules vary.

Do shared ownership properties come with flooring or furnished?

Most new builds include flooring. Furniture is usually not included.

How do shared equity mortgages work?

Shared equity schemes involve an equity loan rather than rent. Different from shared ownership. Ask our team which suits you.

Can I remortgage a shared ownership property?

Yes. Many people secure a mortgage renewal or switch deals to reduce costs.

ADVICE HUB

Our comprehensive advice hub provides detailed guidance on all aspects of first-time buyer mortgages. From understanding mortgage terminology to navigating government schemes, our resources help you make informed decisions throughout your home-buying journey.

Regular updates ensure our advice reflects current market conditions and regulatory changes affecting first time buyers. Whether you're just starting to consider homeownership or are ready to make an offer, our advice hub supports you every step of the way.

All people working within Montgomery Financial share those values and beliefs and support the reinforcement of the fair treatment of our customers.

The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK

There may be a fee for mortgage advice, the exact amount will be based on your circumstances and will be confirmed upon initial consultation. A typical fee of £476 is payable on application for residential mortgages and £673 for buy to let mortgages.

Montgomery Financial is a trading style of Montgomery FS Ltd, which is an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority. Montgomery FS Ltd is registered in England and Wales no: 12305679. Registered Address: The Granary 8 Strixton Manor Business Centre, Strixton, Wellingborough, NN29 7PA

Your home may be repossessed if you do not keep up repayments on your mortgage.

Your Shared Ownership Mortgage: Lender & Scheme Guide

What is the Shared Ownership Scheme?

Why Choose Montgomery Financial for Shared Ownership Support?