Can you remortgage a shared ownership property? Yes, though it works differently to a standard remortgage. Here is how it works, what it costs, staircasing, and the role of the housing association.
Reaching the end of your fixed rate on a shared ownership home raises an immediate question, and a slightly more complicated one than most homeowners face: can you remortgage when you only own part of your property? The answer is yes, and many shared owners do it every few years to secure a better rate or to buy a larger share. But remortgaging a shared ownership property is a more specialist process than a standard remortgage, with fewer lenders, an extra party in the housing association, and the lease to consider. This guide explains exactly how it works, what it costs, how staircasing fits in, and how to approach it so it goes smoothly.
Yes. Owning a share of your home rather than all of it does not stop you from remortgaging. When your current mortgage deal ends, you can move your shared ownership mortgage to a new deal, either with your existing lender or a different one, in much the same way as any other homeowner. The key differences are that fewer lenders operate in the shared ownership market, and your housing association and lease terms are part of the picture. So while it is entirely possible, and routine, it pays to understand how it differs before you start.
Shared owners remortgage for the same core reasons as anyone else, plus one that is unique to the scheme:
Whatever the reason, the goal is the same as any remortgage, to make sure you are on the most suitable deal for your circumstances rather than drifting onto an expensive default rate.
This is where expertise matters, because three things set shared ownership apart. First, the market is smaller. Not every lender offers shared ownership mortgages, so your choice of deals is more limited than for a standard remortgage, which makes shopping the whole market harder to do alone. Second, your housing association is involved. Because they own the remaining share and you hold a lease from them, they have to be informed and their consent is part of the process. Third, your lease governs what is possible, and its remaining length can directly affect whether lenders will lend at all. None of this makes remortgaging difficult, but it does make it more specialist, which is why many shared owners use a broker who knows the niche.
The process follows a logical order, and starting early makes it far less stressful:
As with any mortgage, approval depends on affordability and your credit profile, so it is worth understanding what credit score you need for a mortgage before you apply.
Staircasing is the process of buying additional shares in your home, and it is one of the most common reasons shared owners remortgage. To staircase, you remortgage to release the funds needed to purchase a larger percentage from the housing association. There are a few things to understand. You buy the extra share at its current market value, not the price you originally paid, which is why a formal RICS valuation is required to establish what your home is worth now. As your share increases, the rent you pay on the housing association's remaining share falls, so your overall monthly cost shifts from part-rent towards more mortgage. Staircase all the way to 100% and you generally own the property outright, at which point the rent stops entirely, although some newer leases on houses keep certain conditions. Staircasing and remortgaging often happen together, with the new, larger mortgage funding the bigger share.
Yes, there are costs, and it is sensible to budget for them rather than be caught out. Depending on your situation, you may pay:
If you are staircasing, there may also be the cost of the additional share itself plus any lease memorandum. These costs are usually well worth it if remortgaging moves you onto a materially better rate or lets you grow your share, but you should weigh the total against the savings before committing.
Your housing association is not a bystander in a shared ownership remortgage. Because they own the share you do not, and you hold your lease from them, they have to be notified and their consent obtained before the new mortgage can complete. In practice your solicitor manages this, and the housing association may require specific documentation, sometimes including a formal consent or a deed confirming the lender's position. They may charge an administration fee for their part. The process is routine for them, but it does add a step and a little time compared with a standard remortgage, which is another reason to start early.
Shared ownership homes are leasehold, and the number of years remaining on your lease can directly affect your ability to remortgage. Lenders want enough term left on the lease to comfortably cover the mortgage, and a lease that has run down too far can narrow your choice of lenders or, in the worst case, make remortgaging difficult until it is extended. Before you remortgage, check how many years remain on your lease. If it is getting short, it is worth taking advice on extending it, since a healthy lease keeps your remortgaging options open and protects the value of your share.
This is where shared ownership is more restrictive than full ownership. With a standard home, you can often remortgage to borrow more against your equity for things like home improvements or consolidating debt. With shared ownership, capital raising is far more limited. Lenders and housing associations generally only permit additional borrowing for specific purposes, most commonly staircasing to buy a larger share, and sometimes essential home improvements, subject to approval. You cannot freely treat your share as a piggy bank to draw cash from. If your aim is to release funds, staircasing is usually the route that is allowed, rather than general equity release.
There is a simpler alternative worth knowing about. A product transfer means staying with your current lender and switching to a new rate they offer, rather than moving to a new lender. Because you are not changing lender, a product transfer usually involves less paperwork, often no new valuation, and typically less housing association involvement, so it can be quicker and cheaper. The trade-off is that you are limited to your existing lender's deals, which may not be the most competitive available. A full remortgage to a new lender opens up the wider market but involves more work. Comparing a product transfer against a full remortgage, ideally with a broker, tells you which leaves you better off overall.
Timing makes a real difference. Aim to begin around three to six months before your current deal ends, which gives you time to secure a new rate, allow for the housing association's involvement, and avoid slipping onto the standard variable rate in the gap. Because the shared ownership lender pool is limited and the process has extra moving parts, a broker who specialises in shared ownership earns their place here. They know which lenders accept shared ownership cases, can match you to one likely to approve you, and can coordinate the valuation, the application and the housing association consent so it all lines up. For a niche product like this, that expertise often saves both money and stress.
Remortgaging a shared ownership home is entirely doable and, for most shared owners, a routine part of managing their property, whether to escape an expensive rate or to staircase towards owning more. The differences come down to a smaller lender market, the housing association's involvement and the lease, all of which are manageable with a little planning and the right advice. This guide is general information rather than financial advice, so for your own remortgage speak to a qualified mortgage adviser, and you can read the official overview of the scheme on GOV.UK. To estimate what your new payments might look like, try the mortgage calculator below.
Yes. Owning a share rather than all of your home does not prevent remortgaging. The main differences are that fewer lenders offer shared ownership mortgages, and your housing association and lease terms are part of the process, so it is more specialist than a standard remortgage.
You move your shared ownership mortgage onto a new deal, with your current lender or a new one. The process adds a valuation, notifying the housing association for their consent, and legal work, and it is often used alongside staircasing to buy a larger share.
Check your current deal and any early repayment charge, confirm your share and lease length, speak to a specialist broker, get a valuation, apply to a shared ownership lender, then have your solicitor handle the legal work and the housing association's consent before completion.
Yes. Expect a valuation fee, a possible mortgage arrangement fee, legal and conveyancing fees, perhaps a broker fee, any early repayment charge on your current deal, and a housing association administration fee. If you are staircasing, there is also the cost of the extra share.
Staircasing is buying a larger share of your home from the housing association, often funded by remortgaging. You buy the extra share at current market value, confirmed by a RICS valuation, and your rent falls as your share grows. Reaching 100% usually means owning the property outright.
Only in limited circumstances. Unlike full ownership, you generally cannot freely borrow against your share. Additional borrowing is usually permitted only for staircasing to buy a larger share, and sometimes essential improvements, subject to lender and housing association approval.
Around three to six months before your current deal ends. That allows time to secure a new rate, complete the valuation and legal work, and obtain the housing association's consent, so you avoid slipping onto a higher standard variable rate in the meantime.