Back to Home Ownership Hub
How much deposit will I need and what other costs are involved?
How much deposit will I need to buy a Shared Ownership home?
Buying your first home can feel like a financial mountain, but Shared Ownership makes that climb much more manageable. One of the biggest advantages is the significantly lower deposit required compared to buying on the open market.
The 5% rule
While traditional mortgages often require a 10% deposit on the full property value, Shared Ownership usually only requires a 5% deposit on the share you are buying. Because you are only purchasing a portion of the property (typically between 25% and 75%), your upfront costs are drastically reduced.
Shared Ownership deposit example
To visualise the savings, let’s compare a standard purchase against a Shared Ownership mortgage for a property valued at £200,000:
- Buying on the Open Market: A typical 10% deposit on the full price would require £20,000 upfront.
- Buying via Shared Ownership: If you purchase a 40% share (£80,000), a 5% deposit would be just £4,000.
By focusing only on the share you own, Shared Ownership can reduce your required deposit by £16,000 in this scenario, making the ladder to homeownership much easier to reach.
We've created a useful video with the help of Mortgage Advice Bureau below.
