Who is eligible to apply for shared ownership?
Shared ownership is designed to assist those who cannot afford to buy a home on the open market. To be eligible for a shared ownership home, you must meet the following criteria:
- You must be at least 18 years old.
- Your annual household income should be less than £80,000. If you live in London, the limit is £90,000.
- You should not own another home. If you do own a property in the UK or abroad, you must be in the process of selling it. Shared ownership buyers are typically first-time purchasers.
- You are not able to afford to buy a home suitable for your needs on the open market.
- You must not be in mortgage or rent arrears and should have a good credit history with no bad debts or County Court Judgements.
Additionally, you’ll need to demonstrate that you can comfortably afford the costs of buying and owning a home, including the deposit, mortgage payments, rent, service charges, and bills.
How does Hyde assess your affordability for a new home?
To ensure you can afford your new home, Hyde requires you to complete a two-stage affordability assessment.
First, you’ll undergo a free assessment with a panel of advisors specializing in shared ownership mortgages. This check confirms that the home is affordable for you. You’re not obligated to secure a mortgage through these advisors.
After a successful initial check and once an offer is made, a second assessment examines your financial circumstances in detail. You’ll complete a budget planner to evaluate your income and expenses. The mortgage should not exceed 30% of your net income after considering rent and service charges, and you should have at least 10% of your income remaining after all expenses. This assessment also includes a stress test for potential rent increases over a five-year period.
Even if you’re purchasing without a mortgage, you must complete both assessments. Cash purchases outside London are considered only if you’re unable to obtain a mortgage due to factors like age or religious beliefs—not due to adverse credit history. In London, cash buyers are approved only in exceptional circumstances with authorization from the Greater London Authority.
How does Hyde allocate shared ownership properties?
Given the high demand for shared ownership homes, Hyde allocates properties in an impartial and consistent manner.
We work in a First-Come, First-Served Basis. For both new build and resale homes outside London, properties are allocated to eligible customers who complete the necessary processes first.
Exceptions occur when the government prioritizes certain groups (e.g., armed forces personnel) or imposes specific requirements for a development. Our Sales Team will inform you if any such conditions apply to a particular property or scheme.
To learn more, read our allocation and affordability policy.
