Published 27 January 2012 · Last reviewed 1 May 2026

Shared Ownership Mortgages Deposit Products-Buy a £400,000 house without a deposit.

How do Shared Ownership Mortgages Deposit work? Are you fed up of staring at the same four walls? Are you living with people who are driving you mad? We are repeatedly fed as a Nation: ” It’s impossible to get on the housing ladder!” What if I told you there is a solution to owning your place with a small deposit or, in some cases, no deposit? It’s not perfect or for everyone, but it might just suit you!

What is shared ownership?

Shared ownership schemes allow you to buy in conjunction with a third party, normally the developer or a housing association. You have complete use of the property but start off as a joint owner. The trade-off is you pay rent on the share you do not own.

This approach can make your deposit stretch further and buy a home that makes you feel proud.

So how much deposit will I need?

Shared ownership is pitched at first time buyers or home movers with the intention of making the properties affordable housing. The normal entry level is purchase a 25% share although there will be developments that allow a higher percentage. Most Shared Ownership Mortgage Lenders require you to put in a deposit from 25% to 5% depending on your circumstances, however there are a few Mortgage Lenders that do NOT require a deposit at all!

In the tables below, we lay out the deposit and mortgage amounts you would need to buy a 25% share with a 5% or less deposit.

No deposit

5% deposit

Do’s and Don’ts of Shared Ownership Mortgages

Do’s

• If affordable, look to purchase a large initial share, as property values generally increase over time, and the rent will be lower.
• Make sure the Shared Ownership scheme allows you to increase your share over time. This is known as staircasing.
• Check the monthly service charges as often they are high and can rise quickly over time.
• Make sure the build warranty is from a recognised builder and lasts for 10 years.
• Make sure you discuss the purchase with family and friends.

Don’ts

• Avoid using Mortgage Brokers linked to Developers or Housing Associations, as there is a potential conflict of interest. You should also make sure the advice you are given is impartial and not from a small panel of Mortgage Lenders.
• Avoid being one of the first purchasers in the development as the prices can be inflated to try and set a trend for later sales. Housing Associations and Developers will want to sell the last few quickly to move on to the next project.

Reasons for choosing Niche Advice as your Shared Ownership Mortgage Broker

• No upfront Broker fees by us. You only pay once the deal is completed.
• Up to 100% of the share being purchased.
• Access to 80 mortgage lenders, including some that are exclusive and not available to the general public.
• Guidance on gifted deposit/lending criteria is provided / in the buying process.
• We do not require you to take household and life insurance with us.

#.More information about The Shared Ownership Scheme can be found on the government website. Click here.