A shared ownership mortgage is a government-backed home loan that bridges the gap between renting and a convential house purchase.

Household income must be £80,000 or lower outside of London or £90,000 inside London to qualify for the scheme. The property can be a new build or a resale property through the resale shared ownership scheme.

The Shared Ownership scheme allows you to purchase a share of a residential property (between 10% and 75% of the full market value) and rent the remaining share from a registered authority or a housing association. The rent on the unsold share is subject to an annual increase based on the Consumer Prices Index (CPI).

In addition to the monthly rent payments, there will be a monthly service charge, which covers buildings insurance, street lighting, maintenance of communal areas (grass areas, playgrounds etc.) as well as a lift, if applicable.

The deposit is a low as 5% and calculated based on the share value and not the full market value, making the scheme more achievable than purchasing a property in the conventional way.

You can purchase greater shares of the property at 1% increments (up to 100% ownership), subject to lender affordability and criteria at that time. This is known as 'staircasing.' The price for the additional share will be based on the current market value and not the initial purchase price. The rent will be adjusted accordingly.

Costs will need to be considered for legal fees, mortgage advice fees and housing association reservation fee.

Over the last 10 years I have worked with several Housing Associations, including West Kent Housing Association, Moat Homes, Orbit, Optivo, MHS Homes and Hyde New Homes. 

The actual interest rate available will depend upon your circumstances. 

Please ask for a personalised illustration. 

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it. 

Some mortgages, such as commerical Buy-to-Lets, are not regulated by the Financial Conduct Authority.

Information, guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. 

The Financial Ombudsman Service (FOS) is an agency for arbitrating unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on the website, www.financial-ombudsman.org.uk.

Joanna Stickings trading as Certitude Wealth (FCA number 618000) is an appointed representative of Julian Harris Adviser Network Limited, authorised and regulated by the Financial Conduct Authority (FCA number 304155)

Joanna Stickings - Principal and Mortgage and Protection Adviser