Shared ownership mortgages
As part of our commitment to helping more people get on the property ladder, we’ve introduced shared ownership mortgages in Wales and England.
What is a shared ownership mortgage?
Shared ownership means your client can buy a share of the property and pay the remaining share as rent to a landlord. The landlord could be a housing association or registered privacy landlord.
Your client can increase their property share and the amount they borrow for their mortgage as their circumstances change. This will also reduce the amount they pay in rent. This is called ‘staircasing’.
The benefits of shared ownership is that applicants can:
- buy a home with a smaller deposit
- borrow less, enabling them to meet mortgage affordability thresholds
You can find more information on shared ownership by visiting the government websites for Wales or England.
How does shared ownership work?
We lend up to 95% as a mortgage loan to your client if they plan to own between 25% and 75% of the home’s value.
For example, if your clients wants to purchase a 70% share of a £100,000 house, they will require a mortgage for £70,000. For this, we can lend up to 95% loan to value. The client would require a deposit of just £3,500. The remaining 30% would need to be paid in the form of rent to a landlord.
Key features of shared ownership
Up to 95% lending on new build houses and 90% on flats for 25%–75% of the property value.
Available for both new and pre-owned shared ownership houses.
Offers on new homes are valid for 8 months, with an 8-month extension at the same rate.
Frequently asked questions
We accept applications for housing associations in Wales and England if the property is owned or being purchased under a Shared Ownership Scheme.
We won’t lend where the lease doesn’t allow staircasing up to 100% of the value of the property.
Yes, they can partially staircase going up in increments from 5% or fully staircase up to the 100% value of the property once the mortgage has been active with Principality for a minimum of 3 months.
However, we will not allow simultaneous porting on pre-owned properties. For more information visit our mortgage lending criteria.
Important: We are currently unable to provide staircasing. Sorry for the inconvenience.
Shared ownership is buying a share of a property, often between 25% and 75% of the property value, and paying rent on the rest.
Shared equity is buying 100% of the property using a mortgage, equity loan and a deposit up to the 100% value of the property.
Yes, we offer mortgages via the shared equity scheme Help to Buy Wales.
Yes, you will need to complete the budget planner with your client’s monthly outgoings, including the rental payment.
If you use our online online affordability calculator, you will need to put the figure in the Misc Expenditure box in the Quality of Living Costs section.