Why increasing shared ownership % can change your monthly cost

In shared ownership, you usually pay two things each month:

• Mortgage payment on the share you own (repayment or interest‑only).
• Rent on the share you do not own (often “interest‑like”).

So your monthly cost is often mortgage + rent, not just mortgage.

Tip: use the calculator with shared ownership turned on to see mortgage+rent together.

With a repayment mortgage, part of each payment reduces what you owe (capital repayment), so you build equity over time. Rent on the unowned share is different: it’s a fee for using the landlord’s share, so it usually does not reduce a loan balance in your name.

Higher ownership

• Pros: Less rent exposure (smaller unowned share).
• Pros: More of your outgo can build equity (if repayment mortgage).
• Cons: Larger mortgage needed; affordability may be tighter.

Lower ownership

• Pros: Smaller mortgage needed upfront; may help affordability.
• Cons: Higher rent exposure and rent does not reduce your mortgage balance.

• Service charge / maintenance
• Buildings insurance (or contribution via service charge)
• Staircasing fees / valuation costs
• Rent review increases (often linked to inflation + a margin)

• This page is for general information only and does not constitute financial guidance.
• Shared ownership schemes vary. Always check your lease and housing association terms.