Your Guide to Remortgaging a Shared Ownership Property 2025

Shared ownership has helped thousands of people across the UK get on the property ladder by allowing them to buy a share of a property while paying rent on the remainder. But what happens when your initial mortgage deal ends or your circumstances change? Can you remortgage a shared ownership property? The answer is yes — though the process has some unique considerations that are important to understand.

At Option Finance, we have experience helping shared ownership homeowners remortgage successfully. This guide covers everything you need to know, from how shared ownership remortgaging works to the specific challenges you might face.

How shared ownership mortgages work

Under a shared ownership scheme, you purchase a percentage of a property — typically 25% to 75% — and pay rent to a housing association on the share you do not own. Your mortgage covers only your share of the property.

For example, if a property is worth £300,000 and you own a 40% share, your mortgage is based on £120,000 (your share), not the full property value. You pay rent to the housing association on the remaining £180,000.

This structure affects remortgaging in several important ways:

• Your loan-to-value (LTV) ratio is calculated against your share, not the full property value
• The housing association remains involved and may need to approve your remortgage
• Not all lenders offer shared ownership mortgages, which limits your options
• The lease terms can affect which lenders will consider your application

If you originally purchased through a first-time buyer mortgage scheme, remortgaging gives you the opportunity to review your options now that you have some ownership history behind you.

Why remortgage a shared ownership property?

The reasons for remortgaging a shared ownership property are similar to those for any other property:

Your deal is ending. Like any mortgage, shared ownership mortgages have initial deal periods (typically 2-5 year fixed or tracker rates). When these end, you revert to the lender’s SVR, which is usually much higher. Switching to a new deal can save you hundreds of pounds a month.

Rates have fallen. If market interest rates have dropped since you took out your mortgage, remortgaging could secure you a lower rate.

You want to staircase. Staircasing means buying a larger share of your property. If you want to increase your ownership percentage — say from 40% to 60% — you will need to borrow more, which typically involves a remortgage.

Your circumstances have improved. If your income has increased or your credit has improved, you may now qualify for better rates than when you first bought.

You want to switch mortgage type. Perhaps you are on a tracker rate and want the certainty of a fixed rate, or vice versa.

Our remortgage calculator can give you a quick estimate of how much you could save by switching to a new deal.

Finding a lender that accepts shared ownership

One of the biggest challenges when remortgaging a shared ownership property is that not all lenders offer shared ownership mortgage products. The market has expanded in recent years, but it is still more limited than the standard residential mortgage market.

Lenders that do accept shared ownership applications will typically consider:

• The percentage share you own (some have minimum share requirements)
• The housing association involved (some lenders have approved lists)
• The terms of the lease (lease length, rent review provisions, staircasing rights)
• Your income and affordability
• Your credit history

Working with a whole-of-market broker like Option Finance is particularly valuable in this situation. We know which lenders are active in the shared ownership market, what their specific criteria are, and how to present your application for the best chance of success.

If you have adverse credit, the options are more limited but not non-existent. Some specialist lenders consider shared ownership applications from borrowers with credit issues, and we can identify the most appropriate ones for your circumstances.

The role of the housing association

Unlike a standard remortgage, your housing association has a role in the process. Specifically:

Permission to remortgage. Most shared ownership leases require you to obtain the housing association’s consent before remortgaging. This is usually a formality, but it can add time to the process. You will need to apply to your housing association for a “consent to mortgage” or “permission to remortgage.”

Lease requirements. The terms of your lease — including the rent review mechanism, the staircasing provisions, and any restrictions on subletting — affect which lenders will accept your application. Some lenders have specific requirements about lease length (usually a minimum of 70-80 years remaining).

Staircasing approval. If you are remortgaging to staircase (buy a larger share), the housing association needs to arrange a valuation of the property to determine the current market value of the additional share you are purchasing.

Administrative fees. Housing associations typically charge a fee for processing remortgage consent applications. This is usually £100-£300 and should be factored into your costs.

Contact your housing association early in the process to understand their requirements and timelines. At Option Finance, we can liaise with your housing association on your behalf to keep things moving.

Staircasing: buying a bigger share

Staircasing is a key advantage of shared ownership — it allows you to gradually increase your ownership stake until you eventually own the property outright (known as “final staircasing” or “staircasing to 100%”).

Each time you staircase, the additional share is purchased at the current market value, not the original purchase price. If your property has increased in value, each additional share costs more. Conversely, if values have fallen, you may be able to staircase at a lower cost per share.

The process works as follows:

1. Notify your housing association — tell them you want to staircase
2. Independent valuation — the housing association arranges a RICS-accredited valuation at your cost (typically £150-£500)
3. Determine the cost — the valuation establishes the current market value, and the cost of the additional share is calculated
4. Secure funding — you remortgage to borrow enough to cover both your existing share and the additional share, or you use savings
5. Legal work — a solicitor handles the lease variation and the transfer of the additional share
6. Completion — the additional share transfers to you, your rent reduces proportionally, and your new mortgage begins

Staircasing can be financially beneficial for several reasons:

• Your rent reduces as your owned share increases
• You build more equity in the property
• Once you own 100%, you are no longer paying rent and may be able to remortgage onto better rates, as the property becomes a standard residential mortgage

Our affordability calculator can help you understand whether staircasing is affordable based on your income and current commitments.

Costs of remortgaging a shared ownership property

The costs of remortgaging are similar to those for a standard remortgage, with some additions:

• Arrangement fee: £0-£2,000, depending on the product
• Valuation fee: often free with remortgage deals, though a separate valuation may be needed for staircasing (£150-£500)
• Legal fees: £300-£800. Shared ownership conveyancing can be more complex than standard, which may increase costs. Some deals include free legals.
• Housing association consent fee: £100-£300
• Early repayment charge: check your existing mortgage terms
• Exit fee from current lender: typically £50-£300
• Staircasing costs (if applicable): the cost of the additional share plus legal fees for the lease variation

It is important to factor in all of these costs when deciding whether remortgaging is worthwhile. Our mortgage calculator can help you compare the total cost of different options.

Tips for a successful shared ownership remortgage

Based on our experience at Option Finance, here are our top tips:

1. Start early. Begin the process 4-6 months before your current deal expires. Shared ownership remortgages often take longer than standard ones because of the housing association’s involvement.

2. Check your lease. Review your lease terms before applying. Key things to check include the lease length (aim for at least 80 years remaining), the rent review provisions, and any restrictions that might concern lenders.

3. Contact your housing association promptly. Apply for remortgage consent as early as possible to avoid delays.

4. Use a specialist broker. Not all brokers have experience with shared ownership mortgages. At Option Finance, we understand the nuances and know which lenders to approach.

5. Consider staircasing at the same time. If you can afford to increase your share, doing it alongside your remortgage can be more efficient than doing two separate transactions.

6. Keep your credit clean. As with any mortgage application, maintaining a good credit record improves your options. Avoid missed payments and keep credit card balances low.

7. Think about the long term. If you plan to staircase to 100% eventually, consider how your current remortgage fits into that plan. A shorter fixed rate might give you flexibility to staircase sooner.

Can you remortgage to release equity on a shared ownership property?

Releasing equity from a shared ownership property is possible but more restricted than with a standard property. Some lenders allow it, while others do not. The key constraints are:

• Your housing association must consent to any additional borrowing
• The LTV is calculated on your share, so there may be limited equity to release
• Some leases restrict additional borrowing
• Fewer lenders offer equity release on shared ownership

If you need to raise funds, staircasing and then remortgaging may give you better options, as a larger share means more equity and access to a wider range of lenders and products.

For significant home improvement projects, some housing associations and lenders may be more willing to approve additional borrowing if it adds value to the property.

If you are looking at other ways to manage your finances, our guide to remortgaging for debt consolidation covers how consolidating debts into your mortgage can reduce your monthly outgoings, though this needs to be approached carefully with a shared ownership property.

Moving on from shared ownership

At some point, you may decide to sell your shared ownership property and move home to a property you own outright. The process for selling a shared ownership property differs from a standard sale:

• Your housing association usually has a nomination period during which they can find a buyer (typically 8-12 weeks)
• If they do not find a buyer during this period, you can sell on the open market
• You receive the proceeds from your share, minus any outstanding mortgage

If you have staircased to 100%, you can sell the property like any other home, though you may need to check your lease for any restrictions.

Whether you are planning to sell or stay, keeping your mortgage on competitive terms through regular remortgaging reviews is one of the best ways to manage the cost of shared ownership.

FCA regulation and shared ownership mortgages

All mortgage advice related to shared ownership is regulated by the Financial Conduct Authority. This means that any broker or adviser recommending a remortgage product must ensure it is suitable for your circumstances and affordable based on your income and commitments.

For shared ownership specifically, the FCA’s rules mean that advisers must consider:

• The rent you pay on the unowned share, which affects your overall affordability
• The potential for rent increases, which are usually linked to RPI or CPI plus a margin
• The implications of staircasing on your overall housing costs
• Whether the mortgage product is appropriate given the shared ownership lease structure

At Option Finance, we are fully authorised and regulated by the FCA. Our advisers are trained in shared ownership lending and understand the specific regulatory requirements. We ensure that every recommendation we make is in your best interest, taking into account the unique aspects of shared ownership homeownership.

If you are self-employed and own a shared ownership property, the income assessment follows the same principles as any self-employed mortgage — but the affordability calculation also includes your rent payments, which some lenders may assess differently. Our repayment calculator and affordability calculator can help you understand the numbers before you apply.

Get expert advice on your shared ownership remortgage

Remortgaging a shared ownership property requires specialist knowledge and access to the right lenders. At Option Finance, we have the expertise and market access to find you the best deal, whether you are simply switching to a lower rate or staircasing to increase your ownership share.

Contact us today for a free, no-obligation review of your shared ownership mortgage. We will check what deals are available, liaise with your housing association, and guide you through the entire process. Our goal is to make your shared ownership remortgage as smooth and cost-effective as possible.