Shared equity is when you borrow money, known as an equity loan, to help form part of your deposit when you buy a new home.

You then take out a shared equity mortgage to cover the remaining purchase price of the property you want to buy.

You will still need to provide some of the deposit yourself, usually at least 5%. Use the comparison above to find a shared equity mortgage that suits your needs.

How do you get an equity loan?

Through an equity share scheme, which can be offered by:

  • House builders

  • Local authorities

  • Government initiatives

You can apply for the government Help to Buy scheme, which offers buyers an equity loan of up to 20% of the purchase price on new build properties.

You can find out more about how the Help to Buy scheme works here.

A shared equity example

If you bought a home that cost 300,000 you could:

  • Pay a 5% deposit of 15,000 from your own savings

  • Get a 20% equity loan of 60,000

  • Apply for a mortgage for the remaining 75%, which would be 225,000

Most schemes allow you to pay back the equity loan as a lump sum, usually when you sell your home.

The amount you repay will be based on the market value at the time. So if your home has gone up in value to 400,000 when you want to pay back the loan, you would need to repay 20% of this amount, which would be 80,000.

How to find the right shared equity mortgage

To find a shared equity mortgage:

  • Work out your total deposit: This is your savings plus the equity loan. For example if you have 5% and the loan is 20%, you have a 25% deposit and will need a mortgage with an LTV of at least 75%.

  • Think about what term you want: Most shared equity mortgage come with a fixed initial rate term of 2 or 5 years.

  • Use our comparison to find a low rate: Compare mortgages that offer the term you want and with a low enough LTV for the deposit you have.

Shared equity mortgage FAQs


Will I own 100% of my home?


Yes, you will legally own all of your property, but you will need to repay your equity loan as well as your mortgage.


Can I choose any mortgage with a shared equity scheme?


No, you need to get a mortgage designed to work with the scheme. The deals in this comparison can be used with shared equity schemes.


How do I repay my equity loan?


You can usually repay the loan in full at any time, but if you sell you must repay what you owe to the lender.


How much will I repay?


The amount is based on the market value of your home when you repay, e.g. If you sell for 200,000 with a 20% equity loan you would repay 40,000.


Can I remortgage if I used an equity mortgage?


Yes, some remortgage deals are available. Alternatively, a remortgage for up to 95% of the property's value could be used to repay the equity loan.

About our mortgage comparison


Who do we include in this comparison?


We include every mortgage in the UK you can apply for directly from the lender. They are all from lenders regulated by the Financial Conduct Authority. Here is more information about how our website works.


How do we make money from our comparison?


We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.