Staircasing means buying a further share of your shared ownership home from your housing provider, based on a current valuation, and it can often be funded through a remortgage. If you have adverse credit, the lender assesses the larger mortgage needed to fund the extra share in the same way as any other borrowing, alongside how recent and serious your credit problems are.
This page goes further than our main shared ownership remortgage with bad credit page on the staircasing process itself: how the valuation and purchase work, how much you can typically buy at once, and how bad credit is weighed against the funding needed.
On this page
This page covers
- Reason for remortgaging
- Raising moneyBorrowing more increases your loan to value, which can change the options available.
Read the main guide: Remortgaging a shared ownership home with bad credit
In short
- Staircasing uses a current valuation to price the extra share you are buying from your provider.
- It is often funded through savings, a remortgage, or a combination of both.
- Some leases set staircasing in fixed steps, such as 10% at a time, though this varies, so check your own lease.
- The larger mortgage needed is assessed for affordability like any other borrowing, with your credit history weighed against it.
Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. Borrowing over a longer term can mean paying back more in total.
How does staircasing work, step by step?
Staircasing starts with asking your housing provider for a valuation, usually carried out by a RICS surveyor, which sets the current market value of the property. The cost of the share you want to buy is based on that valuation, not the price the property was worth when you first bought your share. Your provider or their staircasing team will then confirm the process and paperwork, and a solicitor handles the legal side, much like the purchase of your original share.
| Step | What happens |
|---|---|
| Request a valuation | A RICS surveyor values the property to set the current market value |
| Get a staircasing quote | Your provider confirms the cost of the extra share, based on that valuation |
| Arrange funding | Through savings, a remortgage, or a combination of both |
| Instruct a solicitor | The legal transfer of the extra share is completed, alongside any new or increased mortgage |
| Complete | Your ownership share increases and, if applicable, your rent reduces accordingly |
General description only. Exact steps and fees vary by housing provider and region.
How much can you buy at once, and can you reach 100%?
Many leases allow staircasing in fixed steps, often 10% at a time, though this varies by provider and lease, so check your own agreement rather than assuming a figure. Some homes, particularly certain new-build developments, allow you to staircase all the way to owning 100%, ending the rent and the lease’s shared ownership terms. Others cap the maximum share you can own, often because of local restrictions on the land.
If you are unsure what your lease allows, ask your housing provider directly. Getting this wrong can mean planning around a purchase, or a mortgage amount, that is not actually available to you.
How is a staircasing remortgage funded and assessed?
If you are funding some or all of the extra share through a remortgage, the lender treats the increased amount as it would any other borrowing: checking your income, outgoings and stress testing the higher payment. This can be arranged with your existing lender, where available, or by moving to a new one, and either way it usually needs a fresh affordability assessment rather than simply adding the cost to your old mortgage.
Because the increased mortgage sits against a larger share of the property, the loan to value on your new share matters more than on the smaller share you started with. Our guide on how LTV affects a bad credit remortgage explains why a lower LTV generally widens options.
How does bad credit affect staircasing?
Your credit history is assessed in the same way as on any remortgage: how recent and serious the problems are, whether they are settled, and how they sit alongside the larger amount you want to borrow. Because fewer lenders offer shared ownership mortgages in the first place, adverse credit can narrow the choice further, particularly if the staircasing purchase pushes your loan to value up. See our pages on remortgaging with a CCJ and defaults for how each is generally weighed.
A steady record of paying your rent and mortgage on time can help, especially where older credit problems are involved. If staircasing to 100% removes the shared ownership complication entirely, it can also widen your choice of lender for any future remortgage.
What if funding the full staircasing amount is not affordable?
If you cannot afford to buy as much as you would like, buying a smaller share, or waiting until your income or credit history improves, are both reasonable options. Staircasing does not have to happen all at once, and some homeowners buy shares gradually over several years.
Increasing your mortgage to fund staircasing raises what is secured against your home, and a longer term can mean paying more in total. Free advice from StepChange or National Debtline can help you weigh this up if money is tight.
- Ask your provider for a staircasing quote, even if you are not ready to proceed, so you know the figures
- Get your credit reports from Experian, Equifax and TransUnion before applying
- Speak to a broker experienced with shared ownership and adverse credit
- Get free advice from MoneyHelper if the extra borrowing would stretch your budget
What may affect a staircasing remortgage with bad credit
| Factor | Why it matters |
|---|---|
| Current property valuation | Sets the cost of the extra share, and can move up or down since your last purchase. |
| Share you are buying | Some leases set fixed steps, often 10%, though this varies, so check your own lease. |
| Size of the extra borrowing needed | The lender assesses the whole increased mortgage amount for affordability. |
| Resulting loan to value on your share | A higher LTV after staircasing can narrow lender choice, alongside adverse credit. |
| Type and age of credit issues | Recent or unresolved problems are weighed against the larger amount you need to borrow. |
| Rent and mortgage payment history | A clean recent record on both can help, even where older problems appear on your file. |
| Whether you plan to reach 100% | Some leases allow full staircasing, others cap the maximum share, so check first. |
| Provider’s process and timescale | Valuations and quotes take time to arrange, so build this into your plans. |
These are general points, not lender rules. Each lender sets and changes its own criteria.
Information an adviser may ask for
You don’t need all of this to make an enquiry. It helps to know where to find it, because an adviser is likely to ask about most of it.
- A staircasing quote or valuation from your housing provider, if you have one
- A copy of your lease and its staircasing terms
- Your existing mortgage balance, deal end date and any early repayment charges
- Your credit reports from Experian, Equifax and TransUnion
- Details of any CCJs, defaults, missed payments or arrears, with dates
- Proof of income and a summary of your regular outgoings
Frequently asked questions
How much does staircasing usually cost each time?
It is based on the value of the share you are buying at current market value, set by a RICS valuation arranged through your provider. There is no fixed nationwide figure, so ask your provider for a quote based on your own property.
Can I staircase to own my home outright?
It depends on your lease. Some allow staircasing all the way to 100%, ending the rent and shared ownership terms; others cap the maximum share you can own. Check your own lease or ask your provider.
Do I need a remortgage to staircase, or can I use savings?
Either, or a combination of both. Many homeowners fund some of the purchase from savings and borrow the rest through an increased or new mortgage, which is assessed for affordability like any other borrowing.
Will bad credit stop me staircasing?
Not necessarily, but it can narrow your choice of lender if you need to borrow more to fund the purchase, particularly if it raises your loan to value. Lenders look at how recent and serious your credit problems are alongside the amount you want to borrow.
Does staircasing always reduce my rent?
Usually, yes, since you pay rent only on the share you do not own. The exact reduction depends on your lease and the share purchased, so check with your provider for the precise figures.