It’s important to understand the costs when you buy a shared ownership home, both one-off upfront costs and your monthly costs.

Why is it more affordable?

Shared Ownership can be an easier, more affordable way to become a homeowner. 

Because you start by buying just a share of a home. That can be from just 10% but is usually 25% or more. Starting with a share means:

Your deposit is much lower - It’s typically 5% of just the share you buy – much less than if you bought your home outright.

Your mortgage is smaller - This is also only on the share you buy, so it’s more straightforward to get it approved.

There are other costs too. Some you pay every month. Others are one-off costs before you move in. Find out what you need to know here. 

View our PDF guide to Shared Ownership costs

SO Costs v2

This 3 minute video explains the costs of buying your home:

Monthly costs

Each month you must pay the following:

  • Mortgage payment. This is only on the share you buy – that can be from just 10% but is usually 25% or more. Or you can buy up to 75% if you can afford to.
  • Rent. For the share you don’t own – the bigger your share, the smaller your rental payment.
  • Service charge. Helps pay to look after the shared parts of your building or development.
  • The usual costs of owning a home. Such as household bills, costs for looking after the interior of your home and contents insurance.

If you buy a resale home, there may also be ground rent to pay. We will let you know all the details if there is.

Upfront costs

Before you buy a SO Resi home, there are some upfront costs. You can’t borrow money for these as part of your mortgage, so you will need to have saved enough to cover your deposit plus at least £3,000 for these other costs:

  • Solicitors fees and disbursements. Solicitors fees are typically around £1000. Disbursements are payments or taxes paid to third parties by the solicitor on your behalf, for example local searches and land registry fees. Your solicitor will give you a quote upfront for these.
  • Independent financial advisor fees. An IFA can help you find the right mortgage for you. Their advice costs between £400 - £600 but could save you money in the long run.
  • Stamp duty. This may not apply, but your solicitor can tell you more.
  • Reservation fee. If you are buying a SO Resi new build home you will need to pay a reservation fee of £250, we will then refund it when you move in.

This short video explains service charges:

Making sure it’s affordable for you

Before you can buy a Shared Ownership home, we make sure you can afford the cost of living in it. You meet an Independent Financial Adviser (IFA) who looks at your finances, helps you decide what you can afford and confirms you meet our affordability conditions. Even if you have a mortgage approved, you can only go ahead if you meet these conditions.