Part buy, part rent
Part buy, part rent with Shared Ownership
Buy a share of a home with the Government’s Shared Ownership scheme and pay rent on the rest. Over time, staircase your way up to full ownership. If your household income is over the government scheme's limit, or you want more provider choice, Private Shared Ownership could be worth comparing too.
First time buyers only
Buy a share of a home
Your income must be under £80,000
How does it work?
If you can’t save up a large enough house deposit or borrow enough to buy a home, the government’s Shared Ownership scheme could offer a solution.
You’ll purchase a share of the home that you can afford, and you’ll pay rent on the part you don’t own. Rent is usually paid to a housing association. Over time, you can staircase you way up to full ownership by buying more of the property in minimum 10% increments.
Why Tembo?
We help buyers, movers and homeowners discover how they could boost their affordability in 3 simple steps. It’s why we’re the UK’s Best Mortgage Broker.
Things to consider
Not every mortgage is for everyone. Here’s some things you should know before applying.
What are the benefits?
Get on the ladder with a smaller deposit
As you’re buying a smaller share of the property, you don’t need a deposit for the entire house value. So you can get on the ladder without spending years saving up a deposit.
Afford a more expensive property
Unlike with a standard mortgage, you’re not limited to buying a home worth only 4-4.5x your income. With Shared Ownership, you could buy a share of a home with an extra room, a garden, or maybe even in a better location!
Build equity without buying the entire property
The portion of the home that you own will grow in value if the price of the property goes up. This will give you some equity that could help you buy more of the property.
Risks and considerations
Your household income must be £80,000 or less
If you’re buying a Shared Ownership property in London, you cannot have a household income of more than £90,000 to qualify for the scheme. If your income is above this, Private Shared Ownership may be worth exploring instead.
Limited home choices
You can only purchase specific Shared Ownership properties from official Housing Associations.
You'll have to pay rent
You’ll have to pay rent on the portion of the property you don’t own. To qualify, you’ll need to pass affordability checks to ensure you can afford to pay the rent payments and buy more of the property over time.
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