Shared Ownership is an affordable home ownership scheme which could make it easier for eligible buyers to get on the property ladder.

Your clients, if eligible for the scheme, would buy a share of a home (usually between 25% and 75%), meaning they require a smaller deposit and mortgage, and pay rent on the share they don't own. In time, the buyer may have the option to purchase additional shares, up to full ownership. This is known as staircasing.

Available for both purchases and remortgages, if you have a client looking for a more affordable way to purchase a property then Shared ownership could be an ideal solution.

Our Shared Ownership mortgages are only available in England and Wales.

Top tip – when submitting Shared Ownership applications please be sure to specify the loan type as Shared Ownership and not as a Standard Purchase to ensure your application is progressed as quickly as possible.

Why choose Skipton?

We pride ourself on our human touch approach. Our underwriting decisions are made by people, not computers and we offer a dedicated support and underwriting team- with direct access to them when needed.

Key Lending Policy:

  • Where the customer is staircasing to full ownership (no longer Shared Ownership) the max LTV is 95%. Standard products can be selected where the LTV is up to 90%. Where the LTV is more than 90%, specific Shared Ownership, 'staircasing to 100% ownership' products should be used.
  • Where the incentive amount is more than 2% and less than or equal to 5%, the Maximum LTV will be reduced by 5%
    • Example: Max LTV for New build Flat is 95%. If the property had an incentive more than 2%, the max LTV allowed is 90%
    • Financial incentives less than or equal to 2% no LTV restrictions apply.
  • Minimum of £5,000 additional borrowing for Shared Ownership, where there is an element of staircasing (where additional borrowing does not have an element of staircasing the minimum additional borrowing loan is £10,000).
  • Accept 100% of maintenance received and tax benefits as income.
  • Accept up to 20% site exposure in any development.
  • Staircasing up to 100% ownership must be permitted.
  • Available across the whole of England and Wales.
  • Housing Association consent required.
  • Max term 40 years.

We also offer:

  • 9+3 month offer validity period for New Build properties (6 months otherwise)
  • An increased procuration fee of 0.45% for all new Shared Ownership business, as we recognise the extra work required when submitting these applications
  • No charge for a valuation for mortgage purposes where the property is worth less than £1.5 million which is instructed on day one
  • Shared Ownership remortgage products available, often including fee assisted conveyancing. For remortgages that include fee assisted conveyancing services, there may be some additional legal costs payable.
  • Priority underwriting for New Build purchases.

Full details of the policy can be found in the Shared Ownership section in our A-Z lending policy.

View our Product Range

Key Information

What are the packaging requirements for Shared Ownership?

Packaging requirements are as normal - except for the addition of Memorandum of sale. A Memorandum of sale from the housing association is required at underwrite.

Can I use the affordability calculator for Shared Ownership?

Yes you can, it will be based on your client's share of the property and you will need to input the rent payable on the unowned share as an outgoing expense.

Can I apply for a Shared Ownership Mortgage for my client on eMortgages?

Yes, we've made changes to our systems to allow you to do so. Simply select Shared Ownership from the 'loan type' drop down box.

Is Shared Ownership only available on New Build properties?

No - although most Shared Ownership mortgages do tend to be for New Build properties, some are available on the second hand market.

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