Insights, Mortgages & Renting

I Can't Afford a Mortgage, What is Shared Ownership?

flik eco finance what is shared ownership scaled

Not one of the super rich people who can afford a £80,000 to £200,000 deposit for a new house? Yep, join the club, the queue goes around the corner and all the way to Boris Johnson's luxury family mansion.

Another option that a lot of people use to get on the property ladder is Shared Ownership.

I Can't Afford a Mortgage, What is Shared Ownership Table of Contents

What is Shared Ownership?

Who Can Get a House on Shared Ownership?

How Do I Apply for Shared Ownership?

What is Shared Ownership?

Shared Ownership is a little hybrid between buying and renting your own house. Sounds just a little complex right?

With Shared Ownership you buy a share of a house and then pay rent on the part of the house that you don't own. So if you own 40% of the house, you pay rent on the other 60% of the house.

If you don't have enough money to buy your own home, but still want to get your foot on the property ladder, Shared Ownership could be perfect for you.

Who Can Get a House on Shared Ownership?

There are only 3 things you need to do to be able to apply for a Shared Ownership scheme:

  • This has to be your first home, or you used to own a home but just can’t afford it anymore
  • You earn less than £80,000 a year, £90,000 in London.
  • You’re renting a council house or Housing Association property at the moment.

How Do I Apply for Shared Ownership?

The best way to look for a house that you can buy with Shared Ownership is to get in contact with the Housing Team at your local Housing Association or Local Council.

Their team is usually amazing and will talk you through the application process and help you see if you are able to apply for their Shared Ownership scheme.

One thing to remember is that you will probably need to get a mortgage to cover your share of the property & be able to make both mortgage payments and rent payments at the same time.


About Jermaine Hagan (The Plantsman)

Jermaine Hagan, also known as The Plantsman is the Founder of Flik Eco. Jermaine is the perfect hybrid of personal finance expert and nemophilist. On a mission to make personal finance simple and accessible, Jermaine uses his inside knowledge to help the average Joe, Kwame or Sarah to improve their lives. Before founding Flik Eco, Jermaine managed teams across several large financial companies, including Equifax, Admiral Plc, New Wave Capital & HSBC. He has been featured in several large publications including BBC, The Guardian & The Times.

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