Working out what you can afford to buy is one of the first steps you need to take in your Shared Ownership journey. We’re passionate about helping you find the right home in the right neighbourhood, balanced with financing you can afford. That’s why our team is always on hand to help you weigh up your options and unlock the choice that’s right for your London lifestyle.
Below, you’ll find more information on how we calculate Shared Ownership affordability, helping you become a homeowner in the city you love.
Finding the right balance
As well as meeting the eligibility criteria for Shared Ownership, you’ll need to be able to get a mortgage and afford the day-to-day costs of owning your home. This includes your service charge and rent, which increases annually on 1st April. You can read more about the monthly payments, including what’s covered in your service charge, in our guide to Shared Ownership.
To help you work out what you can afford now and in the future, we’ll put you in touch with a specialist mortgage advisor. They’ll help you find a mortgage based on your financial circumstances and advise you on the monthly costs of the home you wish to purchase.
Working Out Your Shared Ownership fees
We’ll look at your take-home pay (after tax) and other financial commitments (such as credit card debt) to work out what you can afford.

Calculating your Shared Ownership affordability
As part of the Shared Ownership application process, you’ll undergo an affordability assessment. We’ll look at your take-home pay (after tax) and other financial commitments (such as credit card debt) to work out what you can afford.
There are several costs involved in buying and owning a Shared Ownership home. So, overall, the total cost of your mortgage, rent and service charges must be no more than 45-50% of your household income after tax. Even if you’ve been pre-approved for a mortgage, we won’t be able to sell you a home if your costs exceed this.
Based on these considerations, you’ll be required to purchase the maximum share you can comfortably afford.
What you’ll need to apply for Shared Ownership
Whether you’re employed or self-employed, we’ll need evidence of your income including:
- Three months of pay slips
- Bank statements from the bank accounts your income is paid into
- If you’re self-employed we’ll need your SA302 forms and accounts from the last three years
Future costs of Shared Ownership
Staircasing
When your income rises in the future, you can buy more shares in your home. This process is called ‘staircasing’. Each time you staircase will incur costs, including the price of your additional share, valuation fees and legal expenses. However, the higher your share, the less rent you’ll pay. Once you’ve staircased to 100%, you’ll own your home outright and pay no rent.