Buying a share means you need a smaller mortgage and therefore the deposit required will most likely be significantly lower than if you were purchasing the property outright because you only need a deposit on the share you are buying. This makes it a much more cost effective way to own your own home – ideal for first time buyers.
The exact deposit figure depends on several factors:
- The full market value of the property
- The size of the share you are purchasing
- Your mortgage lender
- Your credit rating
You should expect to have at least 5% deposit saved.
For example: A 25% share of a property with a full market value of £400,000 is £100,000. A 5% deposit of the share price (£100,000) is £5,000.
Your mortgage advisor will be able to tell you the exact amount of deposit you need. You can contact one of our panel of mortgage brokers to obtain a Mortgage in Principle.