Shared Equity Mortgage – A smart, affordable way to buy your first home
SHARED EQUITY MORTGAGES EXPLAINED
Whether you’re in Aberdeen, London, or anywhere in the UK, our expert team provides clear, friendly Shared Equity Mortgage solutions.
A Shared Equity Mortgage is a powerful option for first-time buyers and home movers looking to buy with a low deposit. It allows you to purchase a property with help from a government scheme, developer, or housing association—bridging the gap between what you can borrow and the full purchase price.
At Hay-House Financial Services, we specialise in Shared Equity Mortgage solutions that make owning your own home more achievable.
Your home may be repossessed if you do not keep up repayments on your mortgage.
What Is a Shared Equity Mortgage?
A Shared Equity Mortgage helps you buy a home with a smaller deposit and reduced borrowing from a lender. An equity loan covers part of the purchase price—typically between 5% and 40%—which you repay later, usually when you sell or remortgage the property.
You remain the sole owner of the property. The equity partner has no rights to live in or manage your home.
How Does a Shared Equity Mortgage Work?
Here’s a simple breakdown:
- Deposit – You contribute as little as 5% of the property’s value
- Mortgage – Your main lender provides 55% to 75% of the price
- Equity Loan – A third party covers the remaining 20% to 40%
- Repayment – You repay the equity loan as a percentage of the home’s value when you sell or refinance
This type of shared equity home loan keeps monthly repayments lower and helps you move in sooner.
Key Benefits of a Shared Equity Mortgage
- Buy with just a 5% deposit
- Lower your monthly mortgage repayments
- Own 100% of your home
- No interest or low interest on the equity loan for initial years
- Great for first-time buyers, key workers, and moderate-income households
Available Shared Equity Mortgage Schemes
We can guide you through the most relevant schemes, including:
- Private Developer Equity Loans – Available on selected new-build homes
- Help to Buy (Legacy) – Still active in some regions of the UK
- Low-cost Initiative for First Time Buyers (LIFT) – Including Open Market and New Supply Shared Equity schemes
- Local Authority or Housing Association Loans – Often with flexible terms
Note: Scheme availability varies by location—we’ll help you find the best fit.
Who Should Consider a Shared Equity Mortgage?
A Shared Equity Mortgage could be right for you if:
- You’re a first-time buyer with a limited deposit
- You have stable income but low savings
- You want to buy a new-build home with developer incentives
- You’re a key worker or meet local council criteria
- You’re open to repaying a share of future value rather than a fixed loan
If you meet any of these, a low deposit mortgage through shared equity could be ideal.
Things to Consider
- The loan is based on a percentage of your home’s future value, not the original amount
- You may need to repay sooner if you remortgage or move
- Interest or fees may apply after the interest-free period
- If property prices rise, the loan repayment amount could increase
We provide clear, honest advice so you understand all the costs and commitments involved.
Shared Equity Mortgage real-life example
Emma buys a £250,000 home using a Shared Equity Mortgage:
- £12,500 deposit (5%)
- £162,500 mortgage (65%)
- £75,000 equity loan (30%)
She owns the home outright but agrees to repay 30% of its future sale or remortgage value. This structure made homeownership achievable with less upfront cash.
Why Choose Hay-House Financial Services?
- Access to shared equity mortgage specialists and lender networks
- Tailored advice for first-time buyers, key workers, and families
- Support from initial application through to legal completion
- Transparent guidance on scheme rules and repayment terms
- Help with government and private equity mortgage schemes
We make the process clear, easy, and aligned to your goals.
Ready to make your income work for you?
Let us help you explore your Shared Equity Mortgage options and take the next step toward homeownership—without overstretching your budget. Contact Hay-House Financial Services today for expert advice.
Call us on 07502 523238 or Email sl@hay-house.co.uk to book your consultation today for expert, financial advice you can trust.