Shared Ownership Mortgages

What is a Shared Ownership Mortgage?
Shared ownership mortgages combine rental with owner occupation. They enable the borrower to buy a stake in the property and rent the remainder. This enables those on low incomes to make a move onto the property ladder. The borrower usually has the option to buy subsequent shares in the property. This process is known as staircasing.

An example of a Shared Ownership Mortgage would be as follows:

A borrower buys a 25% share in a property and pays rent on the remaining 75%. The borrower has the option to buy further 25% shares in the property and thus reduce the percentage rented.