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Borrow up to 100% of your Share.
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Purchase Extra Share of Property.
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This is where you buy a share in the property and rent the remaining share. For example if the property value was £100,000 you may choose to buy a 40% share and then rent the remaining 60% from the housing association for example. You do have the option to staircase in the future and buy more shares within the property.
Yes – however it depends upon many factors to see if we can help source a mortgage lender for you. We will want to see a credit report which will show your credit profile over the last 6 years. Lenders will look at what type of debt the payments were missed on, when these missed payments took place, have you since caught up with the payments etc. It is best to call the office to discuss this with an experienced mortgage adviser for advice and a review of your options.
Some lenders do not have a minimum income requirement, however it is important to make sure that any borrowing is affordable throughout the mortgage term. The adviser will run through a full income and expenditure review to make sure any mortgage is affordable and does not put you under any financial strain.

Shared Ownership Mortgage With Bad Credit

What is a shared ownership mortgage?

A shared ownership mortgage is a Government scheme that helps first time buyers or previous home owners who are unable to buy currently. Shared ownership mortgages work by buying a portion of the property and paying a rent on the rest of the property. A buyer, for example, may initially opt to purchase 25% of the property with the remaining 75% is owned by the housing association or council.

To qualify for the shared ownership mortgage scheme your joint family income will need to be under £60,000 p/a and you will need to be either a first time buyer or in a position where you are unable to purchase a new home outright.

There exists a process called stair-casing that allows the purchase of further shares of your house until such stage as you have purchased the entire property. The agreed sale price is via the housing association and will be dependent upon market conditions. That is, if your property has increased in value since your initial ownership then you will need to pay more, and if the property has devalued then you will pay proportionally less for your increased percentage of the property.


  • Manage to get on the property ladder.

  • It may be cheaper buying part of the property and paying rent on the remainder when compared to renting privately.

  • You can staircase and purchase more of the property share over time.

  • More security knowing that a landlord will not ask you to leave.


  • If you wish to make significant changes to the property such as new kitchens or extensions you will need to get permission.

  • If you was to sell the property you will have to seek advice from the housing association before putting it on the open market.

  • If you want to staircase and purchase more of the property, the property will need to be revalued and the cost of the share may have increased.

Many of the high street lenders offer shared ownership mortgages and if you are declined by the high street lenders due to low credit score or bad credit we have lenders that can still help you purchase your property.

Your property ownership options

When you buy a property with other people, you need to choose how it is going to be owned – this is usually as joint tenants or as tenants in common. You can also enter into a joint mortgage with your parents where they act as guarantor.

Joint tenants

This option might be suitable if you are married or in a long-term relationship with the person you’re buying with. It means you each:

  • Have equal rights to the property.

  • Can claim an equal share in any profit made if the home is sold.

  • Will automatically inherit the property if the other person dies.

Tenants in common

This option might be suitable if you are teaming up with friends or family members to buy a home. It means you:

  • Can each own a different share of the property.

  • Will not automatically inherit the property if the other tenants die.

  • Can choose who to leave your share to in your will.

If you choose to be tenants in common, you should consider asking your solicitor to set up a deed of trust.

Buying with your family as guarantor

You can apply for a joint mortgage with members of your family through our Family Affordability Plan. This option could enable you to afford a larger mortgage and access a wider range of mortgage deals. You will have full ownership of the property, and your family members will not be liable for Stamp Duty.

Both you and your family will be responsible for all mortgage repayments and charges, so you will all need to demonstrate that you can afford the repayments. Your parents will also need to show us that they’ve taken independent legal and tax advice, so they understand the risks involved.

If your circumstances change and you can afford the repayments on your own, you can remortgage and release your parents from the joint mortgage.

How much deposit do you need for a shared ownership mortgage?

You will need a mortgage to help buy the share of the property but much like the Governments Help to Buy scheme, you can get one with a smaller than average deposit. Instead of forking out a 10-20% deposit, shared ownership mortgages will usually only require 5% of the property value.

Is shared ownership better than renting?

Shared Ownership makes mortgages more accessible, even if you are on a lower wage. Your monthly repayments can often work out cheaper than if you had an outright mortgage. The monthly payments are also generally lower than if you were to rent privately and, unlike private renting, you have security on tenure.

Is there a minimum income for shared ownership?

There is no set minimum income allowance for Shared Ownership. If you have a large amount of cash to put down on a property this may make the minimum income more affordable.

How can bad credit shared ownership mortgages help?

If you have had bad credit registered in the past such as missed payments, defaults or County Court Judgements (CCJ’s) we have lenders that would still consider providing you with a mortgage. Typically this ‘bad credit’ will need to have been registered more than 12 months ago. For more information about shared ownership mortgages please complete the above form and an adviser will give you a call.

Related articles from our blog:

First-time Buyers - 5 Ways to Get on the Property Ladder



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