How much deposit do I need for shared ownership?

How much do I need to save for a shared ownership deposit?

Typically you need to save a 5- 10% deposit of the share that you are wanting to purchase. For example, if you are wanting to buy a 25% share in a 200,000 property your deposit would be 5% of 50,000 which would be as little as £2500 deposit.

Saving for a shared ownership deposit is no different than saving for anything else, it may just mean that because the amount is smaller than a usual deposit, you can spread out the cost. You could either save faster by saving in large chunks over a shorter period of time, or save smaller amounts over a longer period of time

How to save for a shared ownership deposit

Here are some tips to help you save money for a deposit;

• Set up a standing order from your main bank account to your savings account so that you can save automatically monthly
• You should create a budget detailing your monthly incomings and outgoings and then plan your spending and savings around that. Money.co.uk have created a great article on how to write a budget 
• Use savings apps such as Plum which can create automatic roundups of your spending so that you do not notice the money coming out as much. Plum then saves the money into a savings pot which then you can withdraw into your bank or savings account.
• You could skip your weekly takeaway and put the money you would have used into your savings account.

You can search for Shared Ownership properties on MovingSoon whilst saving a deposit for your perfect property.

If you are wanting more information about Shared Ownership we have a variety of resources on our blog which will help you understand more about Shared Ownership.