Getting onto the property ladder can feel challenging, especially with rising house prices and deposit requirements. Shared ownership mortgages offer an alternative route to homeownership, allowing you to buy a percentage of a property while paying rent on the remaining share.
At Empire Mortgages, we provide expert advice on shared ownership mortgages, helping buyers across Dunfermline and Fife understand how the scheme works and secure the right mortgage with confidence.
Shared ownership mortgages are designed to help eligible buyers purchase a share of a property, usually between 25% and 75%, while a housing association retains ownership of the remaining portion. You take out a mortgage on the share you buy and pay subsidised rent on the rest.
Over time, you may have the option to increase your ownership through a process known as staircasing. This allows you to buy additional shares in the property, sometimes up to full ownership, depending on the scheme and lease terms.
Shared ownership mortgages work differently from standard residential mortgages because they involve both a mortgage lender and a housing association, making expert guidance particularly important.
When purchasing through shared ownership, you first choose the percentage of the property you want to buy. Your mortgage is based only on that share, rather than the full property value, which reduces the initial deposit required.
In addition to your mortgage payments, you will pay rent to the housing association for the portion you do not own. There may also be service charges or maintenance fees, particularly if the property is leasehold or part of a managed development.
Staircasing allows you to purchase further shares later, subject to affordability and property valuation. Some schemes allow staircasing to 100%, while others may have restrictions, so it’s important to understand the terms before proceeding.
Shared ownership is typically aimed at first-time buyers, although previous homeowners may also be eligible in certain circumstances. Income thresholds apply, and applicants must usually demonstrate they cannot afford to purchase a suitable home outright on the open market.
Lenders will still carry out full affordability checks and assess your credit history, income, and financial commitments. Although deposit requirements are often lower than standard purchases, affordability remains a key factor in securing shared ownership mortgages.
Empire Mortgages will guide you through eligibility requirements and ensure you meet both lender and housing association criteria before applying.
One of the main advantages of shared ownership mortgages is that your deposit is based on the share you are buying, not the full property value. For example, if you purchase a 50% share of a property, your deposit is calculated on that 50% amount.
Deposits often start from around five to ten percent of the share value, depending on the lender and your financial profile. Gifted deposits from family members are usually acceptable, subject to lender approval.
Empire Mortgages will explain exactly how much deposit you need and how your overall monthly costs will look, including mortgage repayments, rent, and any service charges.
Shared ownership can make homeownership more accessible by lowering upfront costs and reducing deposit requirements. It can provide a stepping stone onto the property ladder, particularly for buyers who are struggling to save a large deposit.
However, it’s important to consider the long-term picture. You will have both mortgage payments and rent to manage, and service charges may apply. Selling a shared ownership property can also involve specific processes, including offering it back to the housing association before listing on the open market.
Professional advice ensures you fully understand both the advantages and responsibilities involved.
Not all lenders offer shared ownership mortgages, and those that do may have specific criteria. The process also involves coordination between the lender, housing association, solicitor, and sometimes the developer.
Working with a broker experienced in shared ownership mortgages reduces the risk of delays or declined applications. At Empire Mortgages, we ensure your application is placed with lenders who actively support shared ownership schemes and that all documentation is handled efficiently.
With over 60 years of combined experience, Empire Mortgages provides tailored, professional advice to buyers across Dunfermline and Fife. We take the time to understand your financial position and explain how shared ownership fits into your long-term plans.
Our whole-of-market access allows us to compare lenders and recommend suitable mortgage products based on your circumstances. From Decision in Principle through to completion, we support you at every stage.
Appointments are available in person, by phone, or via video call for your convenience.
The process begins with an initial consultation to assess affordability and confirm eligibility. We then arrange a Decision in Principle to establish your borrowing capacity before you reserve a property.
Once the property is selected and housing association approval is in place, we submit your full mortgage application. The lender carries out a valuation and underwriting checks before issuing a formal mortgage offer.
We liaise with your solicitor and the housing association throughout, ensuring a smooth path to exchange and completion.
If you’re considering shared ownership and want expert advice on shared ownership mortgages, Empire Mortgages is here to help. We’ll guide you through the process clearly and confidently, ensuring you secure the right mortgage for your circumstances.
Book your free shared ownership mortgage consultation with Empire Mortgages today.
A shared ownership mortgage allows you to purchase a percentage of a property while paying rent on the remaining share owned by a housing association.
Your deposit is based on the share you purchase, typically starting from five to ten percent of that share value.
In many cases, yes. Staircasing allows you to buy additional shares over time, although scheme rules may vary.
They are not necessarily harder, but fewer lenders operate in this space. Specialist advice improves your chances of approval.
Yes, remortgaging is possible, although housing association consent may be required.
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The guidance provided within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
Empire Mortgages Ltd is an Appointed Representative of PRIMIS Mortgage Network, a trading name of TenetLime Ltd. TenetLime Ltd is authorised and regulated by the Financial Conduct Authority. Tenet Lime Ltd is entered on the Financial Services Register (www.fca.org.uk/register) under reference 150643.
Empire Mortgages Ltd may charge a fee for mortgage advice. The amount of the fee will depend on your circumstances and will be discussed and agreed with you at the earliest opportunity. Our typical fee is £295 payable on receipt of a full mortgage offer.
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