Bridging finance for shared ownership staircasing

A faster path to owning more of your home

Shared Ownership remains one of the clearest routes into homeownership in Great Britain, especially in higher cost markets like London and the South East where the scheme accounts for around 10% of social housing stock. Monthly outgoings can be lower than a conventional mortgage or private rent, and deposits from just 5% of your share keep the door open for first-time buyers. Yet the journey to full ownership is rarely linear. Recent market data shows staircasing to 100% ownership has fallen to roughly 2.2% of stock annually, the lowest rate in a decade, even as the average size of additional shares per event has grown from 34% in 2022 to 43% in 2025. In other words, people are staircasing in fewer steps, but making those steps larger.

Why the shift? Inflation and elevated mortgage rates around the mid-4% range have prompted households to save harder and time their moves carefully. In many cases, the value of additional shares purchased has risen by about £15,000, reflecting both price levels and the tendency to staircase in bigger increments. London’s staircasing rate to full ownership is materially higher than in more affordable regions, highlighting how local price-to-earnings dynamics shape behaviour. At the same time, the Affordable Homes Programme 2021-26 introduced extra flexibility for new-build Shared Ownership with 1% annual staircasing permitted for the first 15 years, alongside initial shares from 10% to 75%. That flexibility suits some buyers, but others aim to leapfrog several rungs at once.

This is where bridging finance can help. A short-term loan can fund the purchase of a larger equity slice swiftly, then be repaid when you remortgage or redeem using savings, bonuses or sale proceeds. Used well, bridging can help you reduce rent on the unowned share sooner, build equity faster and put you on a clearer route to full ownership. Used poorly, it can be an expensive detour. Understanding the mechanics, eligibility, costs and risks is essential before you act.

Understanding APR is not just about percentages - it is about what you will pay in real money terms over time.

For many households, especially in high-rent areas where Shared Ownership is forecast to be cheaper than private renting in 93% of local authorities by year ten, the long-term numbers can be compelling. Equity growth has historically created meaningful gains, averaging tens of thousands of pounds for buyers who remain invested. If you plan carefully, bridging can be the nudge that turns a plan to staircase someday into a practical step this year.

Who stands to benefit

If you currently own a Shared Ownership home and want to increase your equity faster than savings alone allow, bridging could suit you. It can be especially helpful if you are targeting a larger share purchase to cut rent on the unowned portion, or you need to complete quickly to meet a housing association timeline or valuation window. Buyers in higher cost regions, notably London and the South East, often see the greatest impact where monthly savings and equity gains compound. Equally, if you prefer the new 1% annual staircasing route, bridging may still help smooth cash flow in specific years without committing to a full refinance.

Ways to finance bigger steps

1. Bridging loan secured against your home to fund an immediate share increase, repaid on remortgage or from savings.

2. Remortgage to a larger shared ownership mortgage if product and affordability criteria allow.

3. Further advance from your current lender to cover the cost of the additional shares.

4. Personal loan for smaller top-ups where unsecured borrowing is suitable and cost-effective.

5. Savings plus a smaller credit line to meet valuation-deadline timelines.

Pounds, impact and trade-offs

Who is likely to qualify

Lenders look at your current equity, affordability and a credible exit plan. You will need a recent RICS valuation, consent from your housing association and your lease must permit staircasing at the level you intend. The AHP 2021-26 rules allow 1% annual increments for qualifying homes in the first 15 years, but you can usually staircase by larger amounts subject to lease terms and any rural or older persons’ restrictions. Regional realities matter. London buyers often have sufficient price growth and demand to support larger steps, whereas in the North East the business case may depend more on long-term savings than immediate gains.

Kandoo is a UK-based retail finance broker with access to a broad panel. We focus on the suitability of bridging for your circumstances, not just speed. We will look at the loan-to-value after your new share, the likelihood of remortgage approvals at exit, and how changes in rates could affect affordability. A conservative plan that still achieves your goal usually beats a heroic plan that relies on perfect timing.

From idea to completion - a simple sequence

1. Confirm your lease rules and request a staircasing illustration.

2. Obtain a current RICS valuation acceptable to your landlord.

3. Assess affordability and evidence your proposed exit route.

4. Compare bridging quotes, fees and indicative timelines.

5. Secure landlord consent and instruct your solicitor promptly.

6. Submit your bridging application with full documentation.

7. Complete, purchase the shares and update the lease.

8. Execute your exit - remortgage, repay or partially redeem.

Advantages and drawbacks at a glance

Read this before you commit

Timing and valuation are everything. If the valuation rises between illustration and completion, your cost to buy additional shares can increase. If it falls, your exit remortgage options might narrow if loan-to-value creeps up. Rate movements matter too. Mortgage pricing has hovered in the mid-4% range recently, but a shift of even half a point can change affordability at exit. Build a buffer for fees, potential valuation changes and a longer bridging term than you expect. Keep your documents organised and respond quickly to your solicitor, lender and housing association to avoid avoidable delays. A realistic plan with two exit options gives you the confidence to act decisively.

If bridging is not the best fit

1. Increase shares using the 1% annual route for qualifying homes.

2. Remortgage to a higher shared ownership loan if criteria allow.

3. Use a further advance from your current lender.

4. Save to a target and staircase later to minimise borrowing.

5. Consider selling and buying a larger share in a different property.

Frequently asked questions

Q: How does bridging help with staircasing? A: It provides short-term funds to buy a larger share now, reducing rent on the unowned portion, then you repay when you remortgage or use savings.

Q: Is staircasing to 100% common? A: Full staircasing is relatively rare at roughly 2 to 3% a year, but average step sizes have grown, meaning owners are buying bigger chunks when they do act.

Q: What will I need for approval? A: A recent valuation, landlord consent, proof of income and a clear exit plan. Lenders also check lease terms and your post-transaction loan-to-value.

Q: How are monthly costs affected? A: As your owned share rises, rent on the remainder falls. Overall costs can drop, particularly in higher rent areas, but bridging interest applies until you exit.

Q: What if my exit remortgage is delayed? A: Delays increase cost. Build time buffers, keep paperwork ready and consider a backup exit such as savings or a partner contribution.

Q: Can I use bridging for the 1% route? A: Yes, selectively. It can smooth cash flow for specific years, but many buyers use savings for small annual increments to minimise fees.

How Kandoo can help

Kandoo connects you with whole-of-market bridging options and shared ownership expertise. We assess your plan end-to-end, from valuation to exit, and negotiate timelines that fit housing association requirements. Speak to us for a tailored illustration, an honest view on risks and a clear comparison with remortgage or further advance routes.

Important information

This guide is for information only and not financial advice. Bridging and mortgages are secured on your home. Your home may be repossessed if you do not keep up repayments. Always seek personalised advice before committing.

Next step suggestions: request a staircasing illustration, book a valuation, then compare bridging and remortgage options side by side.