If you'd like further guidance on our other policies, please visit our lending criteria page.
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What is shared equity?
We’re proud to support a range of shared equity schemes across the UK. Shared equity schemes are designed to help customers take their first step onto the housing ladder by reducing the size of the mortgage needed. Typically, a customer purchases a percentage of a property, while a third party (such as a government scheme or housing provider) retains a share. This can lower deposit requirements and monthly repayments, making homeownership more accessible.
We lend on the Government-backed shared equity schemes. Shared equity can be a powerful solution for customers who need some support with affordability, particularly First-Time Buyers. By reducing the initial financial barrier, these schemes open up opportunities that may otherwise be out of reach.
General eligibility
- Maximum 90% LTV for purchase cases. Maximum 75% LTV for remortgage cases.
- Across all shared equity schemes, customers must provide at least a 5% deposit on their share, supplemented by an equity loan from the scheme provider.
- The applicant will be planning to live in the house and not rent it out i.e. it will be the main residence.
- The applicant cannot own any other property, in full or in part.
- The mortgage must be taken out on a capital and interest repayment basis.
- Minimum loan size of 25k for all new products.
Please see our rate guide for our specific Shared equity and Help to Buy remortgage products.
Help to Buy (Remortgage, England only)
Customers with a Help to Buy Shared Equity mortgage with another lender will be able to remortgage to us, the balance and term must not increase. To switch, customers need to notify the Home and Communities Agency (HCA) and, if applicable, the Developer Lender for consent to change mortgage lender.
- The property must be the customer's only residence.
- Available to UK citizens and those with the permanent right to reside in the UK.
- Include 3% of the equity share (divided by 12) as a monthly commitment.
- Customers are required to pay the following fees:
- A Deed of Postponement administration fee to the HCA through their scheme administrators (Lenvi)– they can be called on 0300 123 4123.
- A Deed of Postponement fee (Some developers also charge when changing mortgage provider) and for additional legal work to complete this by our solicitors whilst interacting with Lenvi.
- A CHAPS fee of £30 + VAT. If there is any remaining funds to be paid back to the customer there is an additional chaps fee (customer has option to have this paid by cheque free of charge).
- Customers wanting to complete a Transfer of Title to remove a party from the mortgage are required to pay an administration fee to the HCA.
- Our solicitors will act on behalf of the customer to process their application and provide the scheme administrator, Lenvi, with the necessary paperwork.
- All Help to Buy Shared Equity Scheme rules and policies apply.
- If a customer is looking to repay any shared equity loan in full, then we can also help with any of our standard remortgage products.
Additional legal work fees can be viewed here.
For fees due to the HCA (Lenvi) please see here.
For existing mortgage customers currently with a help to buy mortgage who are looking for additional borrowing, please click on the following Additional Borrowing Hub FAQs.
Scottish First Homes Fund (Purchase only)
The Scottish Government has launched this new shared equity scheme to help First-Time Buyers onto the property ladder. It covers both new build and existing homes, with a £100 million annual budget over the next five years, aiming to assist up to 50,000 households.
The Scottish First Homes Fund is open to First-Time Buyers in Scotland. Key points:
- Property purchase limit of £300,000.
- The government offers an equity contribution of up to £10,000 per property.
- Customers own 100% legal title, while the government holds an equity stake.
- The equity loan is a percentage stake in the property, repayable based on property value with no fixed deadline.
- No interest payments are required while in the scheme.
- Across all shared equity schemes, customers must provide at least a 5% deposit on their share, supplemented by an equity loan from the scheme provider.
Things you need to know:
- If your customer meets the criteria for the scheme and they receive an Award Letter, the missives need to be concluded within 3 months of it being issued. If this isn’t concluded within 3 months, your customer would need to submit a new application if they still wish to receive support from the scheme. A further period of up to 6 months is given to allow settlement of the purchase to take place.
- A fee of £650 will be charged and collected by the Administering Agent once they receive your customer’s application.
For more information and detail on this scheme, please see here.
Scottish LIFT applications (Purchase only)
There are 2 variations of shared equity in Scotland that we can consider:
New Supply Shared Equity Scheme (NSSE)
Open Market Shared Equity Scheme (OMSE)
We will not lend on: New Supply Shared Equity with Developers Scheme
The minimum deposit required is 5%, based on the client’s share of the purchase (Purchase price less the contribution from LIFT scheme). Please see examples below:
Homebuy - Wales (Purchase Only)
Available mainly for new build properties only but the purchase of some existing properties may be allowed- New build maximum Loan to Value applies. The shared equity loan between 30% and 50% will be funded by the housing association. There are no monthly fees for this scheme.
The minimum deposit required is 5%, based on the customer’s share of the purchase (Purchase price less the contribution from Homebuy scheme).
For more information and detail on this scheme, please see here.
