What is a Shared Ownership Mortgage in Hull?

The Shared Ownership scheme is a mortgage scheme introduced by the government all the way back during the 80s. It was brought in under the Housing Act 1980.

The scheme is designed to help homebuyers get onto the property ladder. It is only available to permanent UK residents who are either first time buyers or moving home in Hull. If you are struggling to save up your mortgage deposit as a home mover or first time buyer in Hull, perhaps the Shared Ownership scheme could be the solution you need.

How does the Shared Ownership scheme work?

The Shared Ownership Scheme allows you to purchase part of a property, split with the housing association. The portion/percentage of the property that you are able to buy is usually between 10%-75%, where the housing association owns the remainder.

The way that this works is that you take out a mortgage on this percentage and then pay rent on the remaining amount. You will have mortgage payments and rent payments to account for each month. Your rent will be lower than if you had to pay rent on 100% of the property.

Furthermore, your annual, combined household income has to be £80,000 or less (£90,000 or less if you’re in London) and the home you are purchasing will almost always be a leasehold property. Leasehold means you will be purchasing the home for a set amount of time.

Updates to The Shared Ownership Mortgage Scheme

For anyone who has previously heard of or used the Shared Ownership Scheme, you may have been aware that the minimum percentage that you used to have to take out was 25%, while some newer properties now allow an initial share as low as 10%. The minimum depends on the property and scheme.

This was a huge help to those wanting to utilise the Shared Ownership Scheme, but just couldn’t quite afford it. In turn, the lower the percentage of the property that you own, the higher your rental payments may be.

Some newer leases include an initial repair period, usually lasting ten years from the home’s original sale and ending sooner if you reach 100% ownership. During this period, the landlord covers certain essential structural and external repairs, and you may be able to claim up to £500 a year for eligible repairs to fixtures and fittings, subject to the lease and claims process. This does not cover all maintenance or repairs, and service charges still apply.

If you have taken out a Shared Ownership mortgage in Hull before the newer model was introduced, your lease may not include these provisions. Check the lease and key information document with your housing provider, rather than assuming the purchase date determines your repair cover.

How do I apply for a Shared Ownership mortgage in Hull?

Shared Ownership is a Help to Buy Scheme, and just like all other Help to Buy Schemes, you must qualify for them before you can access them. Most schemes require you to be a first time buyer in Hull, whereas others are a little more flexible and can be accessed by more types of buyers.

As a mortgage broker in Hull, we would recommend speaking with an expert to work out whether or not you are eligible for the Shared Ownership Scheme. As mentioned, there are a variety of factors that go into deciding whether someone can access the scheme or not, therefore, it is always best to check before applying.

One of our mortgage advisors in Hull can look at your affordability and personal and financial situation to work out whether the Shared Ownership route is for you. We are open and honest with our customers, meaning that if you are better suited to another Help to Buy Scheme or the traditional mortgage route, we will make you aware that this is the case.

Our team will make you aware of the costs involved with the Shared Ownership Scheme and whether it is a viable option for you and your circumstances.

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Pros & Cons of Shared Ownership Mortgages in Hull

With any type of mortgage, there will be pros and cons. This works for all Help to Buy Schemes also.

Pros

When taking out a Shared Ownership mortgage, the deposit total that you have to put down on the property is determined by the percentage of the property that you are purchasing. For example, if you are purchasing 50% of a property worth £200,000 and you need to provide a 5% deposit, you will need to put down £5,000 (5% of the £100,000 share), leaving a £95,000 mortgage.

Sometimes, you may get the option to purchase your Shared Ownership property in the future. If you get this option further down the line, it may be within your best interests to take a mortgage out on the remainder of the property. Not all building associations will allow this. When taking out your Shared Ownership mortgage, it may state in your contracts whether this is an option in the future.

Cons

One con is that you would be paying more rent if you take out a mortgage on a lower share of the property. For example, if you take out a 10% share of the property, you will pay more towards your rent than you would if you were to take out a 50% share.

If you are able to purchase more of the property and increase your share passed 75%, unfortunately, you will have to pay Stamp Duty on the entire value of the property, though sometimes this land tax won’t apply to a first time purchase.

Since you do not outright own 100% of the property, you only own a percentage, you must obtain permission before you are able to make any structural changes to the property. This can take away some of your freedom, unfortunately; which you would have if you owned your own home.

Can I sell my home if I have a Shared Ownership Mortgage in Hull?

You can sell your Shared Ownership home without first buying all the remaining shares. If you own less than 100%, you must tell your landlord you want to sell. Your lease normally gives them a nomination period to find a buyer for your share.

If they do not find a buyer within that period, you can usually market your share yourself, subject to the lease. Homes with a designated protected area lease requiring mandatory buyback have different rules: the landlord must buy the home or arrange another buyer.

If you own 100%, you can usually sell on the open market. Check your lease, valuation requirements, selling costs and any mortgage early repayment charges with your solicitor before proceeding.

Is a Shared Ownership Mortgage in Hull right for me?

The Shared Ownership Scheme is a great option for first time buyers and home movers struggling to save up for a deposit and to afford the usual mortgage costs. This is mainly due to the fact that you can put down a lower deposit on the property.

Shared Ownership is only available on certain types of property, which can complicate the process in some cases. We will make sure that you are fully prepared and know the ins and outs of Shared Ownership in Hull before purchasing a property.

You can easily contact our mortgage advisors in Hull by booking a free initial shared ownership mortgage appointment online. We work 7 days a week so that you can book an appointment for a date and time that suits you. We will be more than happy to help!

You can learn more about the Shared Ownership Mortgage Scheme by visiting the government OwnYourHome website.

Date Last Edited: 10/20/2026