Affordability

As well as being eligible for Shared Ownership, you need to be able to get a mortgage and afford the other costs of owning a home too.

What you can afford?

We'll assess your financial situation when you apply for a property you like. We decide the share of a property you can afford by looking at your take-home pay after tax and other financial commitments such as credit card debt.

Overall though, the total cost of the mortgage, rent and service charges must be no more than 45% of your household income after tax. Even if you have been pre-approved for a mortgage, we will not be able to sell to you if you exceed this debt-to-income ratio.

We have an obligation to make sure that you can afford a home now and in the future, because we will still own a share of the property. We look at each case individually and we may need to see more information like an Experian report to help inform our decision. If we're concerned by your debts or unsustainable spending habits it may lead us to withdraw our offer.

Evidence of your income

If you're self-employed we'll need to see your SA302 forms and accounts from the last three years. 

Whether you're employed or self-employed, we'll also ask for evidence of income – three months of pay slips and the corresponding bank accounts this has been paid into. Please read our FAQs for more details about how we decide affordability.

Your citizenship

You may have trouble obtaining a mortgage if you're not a British, EU or EEA citizen or if your passport is not stamped with 'Indefinite leave to remain'. In this case it's best to speak to a specialist mortgage advisor first.

NEXT: read our full guide to how Shared Ownership finances work