You’ll require a different kind of deposit if you’re keen on purchasing a home to rent out or as part of a shared ownership agreement.
Buy to Let mortgage deposit
With Buy to Let mortgages, the required deposit is usually 25% of the property value. The value of the deposit you put down depends on the value of the property and how much you can afford as a lump sum.
For example, on a Buy to Let property valued at £200,000, a lender may ask for a 25% deposit – which is £50,000.
Shared ownership deposit
In a shared ownership mortgage, you can buy between 25% and 75% of a property and pay rent on the remainder. You only take out a mortgage for the part of the property you own, so the deposit could be smaller.