See how we can help

Get started online

95% ltv shared ownership mortgages

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Oct 16, 2022

Fact Checked By:
David Nicholson - Finance Editor

95% LTV shared ownership mortgages

Shared ownership mortgages are practically designed for borrowers from low-income households.

A 95 percent shared ownership mortgage means having to put down a 5 percent deposit but, it’s much more multifaceted than that.

Here’s our guide on everything you need to know about 95% LTV shared ownership mortgages.

Get approved online for a 95% shared ownership mortgage below:

Get started online


What are shared ownership mortgages?

As the name suggests, a shared ownership mortgage is a type of mortgage in which instead of buying an entire property, you purchase a share. With shared ownership, you pay a mortgage on your share and then pay rent on the rest.

Shared ownership mortgages allow you to buy between 25 and 75 percent of a property via a housing association while paying rent for the remaining share. Initiating this arrangement requires a minimum deposit of 5 percent.

We are expert mortgage brokers

We have access to over 200+ lenders in the UK to get you the best rates

Get your Quote


What is LTV on shared ownership?

Share-to-buy lenders calculate LTV or loan-to-value on shared ownership mortgages in a different way to standard mortgages.

In this case, rather than calculating the LTV according to the value of the entire property, it’s calculated according to the share that you’re purchasing. Hence how you’ll pay a 5 percent deposit with a 95 percent LTV shared ownership mortgage.


Are 95% LTV shared ownership mortgages harder to get?

Since you’ll be putting down a 5 percent deposit with this arrangement it would be significantly harder to get than if you were putting down a deposit of 10 percent or more. To put it in simpler terms, this type of mortgage scheme substantially limits the number of lenders that are willing to engage with you, as the lower deposit means greater risk for them.

If you’re presenting a substantial amount of risk to mortgage lenders, the chances of having to deal with inflated interest rates are much higher.

In addition, if you’re over the age of 75, have high expenses, are self-employed with few accounts, and have a poor credit record, you may find it much harder than the average person.

It’s easy to panic and see the chances of you getting your dream home slipping away, however, there are mortgage brokers, such as Loan Corp, who can help people with unique circumstances.

You have to bear in mind that mortgage providers make approvals according to different criteria, just because one rejects you doesn’t mean they all will.

Get started online


Who are 95% shared ownership mortgages best for?

If you’re living permanently in the UK and you fall into one or more of the following categories, then a shared ownership mortgage might be for you:

  • First-time buyers.
  • Those who already live in a shared ownership home.
  • If your household earns less than £80,000 a year or £90,000 if you live in London.
  • If you’ve previously owned a home but now cannot afford to buy.
  • People who are renting a property from the council or housing association.

Be sure to check out the government’s website for a more comprehensive look at this scheme.


The types of properties you can buy

One of the main drawbacks of a shared ownership mortgage is that you’re restricted to buy properties that have been built by a housing association through a government subsidy. Such homes are generally found in apartment blocks or new build estates.

Get approved for a mortgage online below:

Get started online


How to apply for a 95% shared ownership mortgage online

The actual application process to get a shared ownership mortgage may vary slightly depending on the lender you’re dealing with and if you’re using a mortgage broker.

In general, you’ll be asked questions about the following:

  • Your income
  • Credit history
  • Savings
  • Preferred location

The amount you can borrow depends on your income, service charges, ground rent, rent, and mortgage costs. Get approved online now below:

Get started online


95 LTV mortgage lenders

Finding mortgage providers that are comfortable with and offer 95 LTV mortgages is not an easy task. A quick Google search isn’t enough to find such lenders. Read this 95% mortgage lender guide, where we help you access the best lenders.

Here are a few lenders who offer 5 percent deposit mortgages:

Whether you find one via a Google search or have your eye on any of the lenders mentioned above, approaching them directly is generally not recommended.

Going through a mortgage broker such as Loan Corp could serve you much better as we have a dedicated team of experts who will know who is best to approach in line with your individual situation.

Doing this will also save you valuable time and can better the chances of your application being approved the first time of asking.

Get started online


Pros And Cons Of Shared Ownership

Like any mortgage scheme, a shared ownership mortgage has its fair share of ups and downs; here are a few:


  • Provides the opportunity to own a home without having to put down a large deposit.
  • Being able to pay rent on a property that you could own in future.
  • You can purchase the part of the home that you’re renting out at a later stage.
  • You can sell your shared ownership whenever you see fit, even if you don’t completely own it.


  • If you choose to purchase a flat with this arrangement, you’ll more than likely have to pay maintenance charges for communal areas.
  • You’ll have to pay ground rent and service charges on the property.
  • When you’re ready to sell your home, the housing association may not give you full control over who you can sell it to.
  • Restrictions in terms of the properties that you can buy.

Get started online


Shared ownership interest rates

In many cases, there is a direct correlation between your interest rate and the amount you put down for a deposit. Shared ownership mortgages with a 5 percent deposit are often accompanied by high rates, as mortgage lenders always seek ways to offset risk. Despite this, it’s still possible for people to get favourable interest rates on 95 LTV mortgages.

Rates change according to several factors such as the market conditions, your age, the nature of your employment, and your credit. So, if a shared ownership lender doesn’t see any other risks apart from the 5 percent deposit, then you could still get a more wallet-friendly interest rate.

This is why having a competent mortgage broker is an important part of this process. While factors such as bad credit and low income may be limiting in some senses, a mortgage broker with the right knowledge and expertise may still help you find mortgage options by looking into specialist lenders.

Interest rates are always subject to change so be sure to get in touch with Loan Corp to get up-to-date mortgage advice.


Getting a shared ownership mortgage with a deposit below 5%

Many don’t know that you can get a shared ownership mortgage with a deposit below 5 percent. However, because the lender options in the shared ownership sector are already limited, finding a lender that can offer a 100 percent LTV shared ownership mortgage is not easy.

As you’ve probably gathered by now, the interest rates on such an arrangement will more than likely be significantly higher than that of your typical 95% LTV mortgages and because this scheme is riskier for the lender they’ll probably have much stricter eligibility criteria.



Once you’ve successfully purchased a portion of a property via a shared mortgage, you can increase your percentage share through what is known as ‘staircasing.’

It’s typically possible to staircase all the way up to 100 percent ownership, however, if you’re part of an OPSO scheme or if you live in certain semi-rural locations, then you may be capped at 80 percent.

You’ll need to secure a staircasing mortgage to fund the purchase of further property shares unless you can use savings or inheritance money.

Other than those options, you’d have to get a further advance from your current lender or a shared ownership remortgage. We have guides on remortgaging if you need help.

If you’re failing to keep up with the increased monthly repayments, then you may be able to downgrade the staircase but, doing this primarily hinges on the terms of your lease agreement.

Get started online


Find 95 LTV Mortgages With Loan Corp

Finding a suitable mortgage scheme is not easy, particularly if you’re looking for one with a 5 percent deposit or less. Once you find a lender that ticks your boxes there is still little to no guarantee that your search will conclude with your application being approved.

Mortgage applications can be rejected for a number of reasons, most of which aren’t immediately clear. This is why enlisting the services of a mortgage broker is a good way to save time and money.

At Loan Corp, our team of mortgage experts can guide you through the process of finding a shared ownership mortgage while giving you comprehensive mortgage advice. If you’re ready to find your dream home, get in touch with us through our online form below or call us on 0808 301 9509.

Get started online



What is the mortgage guarantee scheme?

The government’s 95% mortgage guarantee scheme was established to incentivise lenders to launch higher LTV products. The scheme allows lenders to buy a government guarantee that compensates them for a percentage of their losses should a foreclosure occur.

The guarantee was an immense step in terms of helping a new generation in bringing the dream of home ownership to fruition.

Can I build extensions on a shared ownership property?

Building extensions are a possibility on shared ownership properties; however, doing so requires you to ask for permission from the housing association. Despite this, you’re free to decorate your home, so long as you’re not making any structural changes.

What happens when I’m ready to sell my shared ownership property?

When you’re ready to sell your property or percentage, it’s important to remember that the housing association will have what is referred to as ‘first refusal.’

This basically means that they can find their own buyer if they want to. This rule applies regardless of whether or not you own the full percentage of the property.

What Is The Leeds Building Society?

The Leeds Building Society is a financial services provider that offers a range of savings, ISA, insurance, and mortgage products. The society is covered by the Financial Ombudsman Service and is also on the Financial Services Register.

Being party to these organisations is key in terms of gauging the legitimacy of any financial services provider in the UK.

Get approved for your shared ownership 5% deposit mortgage online below:

We can get you approved for a mortgage online below:

Get started online