Remortgaging a Shared Ownership Home

Yes, you can remortgage a shared ownership home, either to get a new rate or to buy a bigger share. Fewer lenders offer it, and your housing association usually has to agree if you move lender or borrow more.

When your deal ends, you have the same choice as any homeowner: switch to a new deal with your lender, or remortgage to another one. The extra steps come from the lease and the landlord, so start earlier than you would on a normal remortgage.

You might be remortgaging because your deal is ending, because you want to staircase, or because you want to borrow for something else, which is usually restricted. For the wider picture on switching deals, see our complete UK remortgage guide.

Can you remortgage a shared ownership property?

Yes, with the right lender. You can take a product transfer with your current lender or move to another lender that accepts shared ownership. A new lender, or any extra borrowing, usually needs your housing association’s consent. Lenders assess your mortgage, rent and service charge together, and work out loan-to-value on your share.

Is a product transfer the simplest route?

If you are not borrowing more, a product transfer with your current lender is usually the easiest option. There is often no affordability check, no valuation and no legal work, and the housing association usually does not need to be involved.

A remortgage to a new lender can get you a better rate, but the new lender must accept shared ownership, and your housing association will usually need to give consent. Allow extra time. See our product transfer vs remortgage guide.

How does staircasing work?

Staircasing means buying more of your home from your landlord, usually a housing association. For most shares, the price is based on what your home is worth now, not what you originally paid.

1. Tell your housing association you want to staircase.
2. Get a valuation from a RICS-registered surveyor. Your landlord tells you whether it arranges this or you do. The price usually holds if you buy within three months of the valuation date.
3. Arrange the borrowing, either by remortgaging for a larger amount or with a further advance from your current lender.
4. Complete the legal work. Your rent then falls in line with the share you still do not own.

How small a share can you buy?

It depends on your lease. GOV.UK’s guide to buying more shares sets out the main rules:

Lease type	Usual minimum step
Most leases	10% or more, at any time
Some older leases	25% or more
Some newer leases	5% or more
Bought on or after 1 April 2021, where the lease allows	1% a year for the first 15 years

The 1% shares are priced from your original price adjusted by the House Price Index, and there is no admin fee for them. Most people fund them from savings rather than a remortgage. Some homes in protected areas are capped at 80% ownership, and Older Persons Shared Ownership at 75%.

What do lenders check?

• Affordability includes your mortgage, your rent and any service charge.
• Loan-to-value is based on the value of your share, not the whole home. Many lenders lend up to 95% of the share’s value.
• The lease must meet their criteria, including its remaining length. See our guide to leasehold mortgages.
• Housing association consent for a new lender or extra borrowing.

Can you release equity?

Usually only for limited reasons. Most housing associations and lenders allow extra borrowing to staircase, and some allow it for essential home improvements with consent. Borrowing to clear debts or for other purposes is rarely permitted on shared ownership.

What costs should you budget for?

• Valuation for staircasing, paid to a RICS surveyor
• Housing association admin fee, roughly £150 to £500 for shares of 5% or more, according to GOV.UK
• Legal fees, often covered by free legals on a straight remortgage but not for staircasing
• Lender arrangement fees
• Any early repayment charge if you leave your current deal early. FCA rules in MCOB 12.3 cover how lenders set these

Stamp Duty may also apply when you staircase, depending on how the original purchase was taxed and the share you reach. Your conveyancer can confirm.

Which situations do lenders see most?

These are illustrative situations, not Option Finance client outcomes.

What happens when you reach full ownership?

Once you own 100%, you stop paying rent to the housing association. In most cases you then own the freehold of a house, or a standard lease of a flat. You can remortgage on the open market, with many more lenders and usually lower rates. See our Shared Ownership guide for how the scheme works.

Frequently asked questions

Speak to Option Finance about your shared ownership remortgage

Tell us your share, your lease type and what you want to achieve. We will tell you straight which lenders will look at it and what the housing association will need.

Book a free initial consultation using the enquiry form below. See our remortgage advice and our guide to remortgage costs and fees.