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Borrowers blocked amid shared ownership shenanigans

ended 16. July 2025

One broker on Newspage, who deals with a lot of adverse and lower income borrowers, says more and more shared ownership providers are blocking buyers who don’t put in a deposit even when lenders have approved them.

For example, lenders like Kent Reliance and Together now allow zero deposit mortgages on affordable housing, but buyers whose 100% loans have been approved are still being rejected by certain shared ownership providers.

Worse, some sites are refusing these lenders altogether due to vague rate restrictions, which were previously tied to the Halifax SVR. Even when the rates are lower than the Halifax SVR, which many now are, applications are still being rejected without any clear explanation.

On top of this, the broker says borrowers are often pressured to go through Metro Finance or panel brokers even when they have their own adviser — and that this is creating additional uncertainty and hurdles for complex clients.

  • Have you had a shared ownership case declined because the buyer wasn’t putting in a deposit, despite using a lender (e.g. Together or Kent Reliance) that allows zero deposit?
  • Have you had a case where a shared ownership provider rejected a mortgage product due to interest rates being “too high”, even though the rate was lower than the Halifax SVR?
  • Have you seen a client/buyer forced to apply through Metro Finance or another panel broker despite already working with a broker (you, for example)? Does this have a whiff of conditional selling?
  • Do you believe shared ownership providers are making it unnecessarily difficult for complex or non-mainstream clients to access affordable housing?

4 responses from the Newspage community

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Editor
Emma Jones
Managing Director at Whenthebanksaysno.co.uk
We’re seeing shared ownership sites refusing zero deposit mortgages from lenders like Kent Reliance and Together even though these products meet criteria and are designed to support affordable housing. Some are also rejecting applications based on interest rates, using outdated benchmarks like Halifax SVR, even when the offered rates are now lower. Add to that the pressure buyers face to go through their preferred brokers or panel brokers, and it’s creating unnecessary barriers, especially for complex clients who already have good brokers in place.
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Michelle Lawson
Director at Lawson Financial
This practice is endemic throughout shared ownership and new build. In the wake of Panorama’s investigation, this is another part of conditional selling that needs to be brought to the public's attention, as it once again falls outside of the Estate Agents' Code of Conduct. Essentially, it's open season for estate agents but it shouldn’t be.
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Justin Moy
Managing Director at EHF Mortgages
More conditional selling dressed up as an ‘Affordability Check’ by the developer with the premise of stealing business. No mortgage broker should be obtaining a Decision in Principle without those basic checks on income and affordability, therefore there is no need to make it difficult for the buyer if they have been through that process already. Are developers more concerned about down-valuations with less popular lenders? Too many vested interests in what should be an enjoyable experience.
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Ellis Shepherd
Director & Mortgage Broker at All About Mortgages
Fake News. More negative press about shared ownership from those who do not understand the scheme or the complexities involved. Shared Ownership affordability is based on a set of specific parameters that Homes England has clearly defined and updated. There are stress testing measures in place, which include looking at the rent over the next 5 years. If a client has a 100% mortgage approved, the rate is clearly going to be higher, which means that when you include the stress testing, it may fail the affordability. Furthermore, housing associations have the right to request a minimum deposit level, as outlined in their policy. Homes England does not dictate what a provider's policy should be. If Lenders set a minimum level of deposit they will accept, why can't a scheme provider? It is not mandatory for clients to use the panel broker for their mortgage, but they must undergo an affordability check by someone who understands the rules and complexities of the scheme. Simples.