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Just Mortgages: Shared Ownership must be changed

Just Mortgages believes that Shared Ownership is a barrier to the very borrowers it is designed to help. They state that feedback from across their broker network reveals that clients regularly misunderstand who the scheme is targeted at and what the term means.

Just Mortgages says it is also aware of many other misconceptions around shared ownership concerning what properties would be acceptable, what rates are available and how long the process may take.

Shared ownership is often positioned as a vehicle for those first-time buyers without a deposit, but it can also be appropriate in those situations where relationships break down. In this situation, it often results in one partner leaving a family home without a deposit at their disposal but an income and salary that could happily support a mortgage payment. Just Mortgages believes that this is one of an emerging group of borrowers that shared ownership could help but is often left off the agenda as the name suggests it might not be suitable for that borrower.

John Philips, national operations director at Just Mortgages, said, “We get tremendous feedback from across our broker network about all mortgage types, and there is clearly an issue to be addressed with Shared Ownership. Recent anecdotal feedback from some younger borrowers revealed that they thought shared ownership meant sharing the property and not living alone.

“Those who are slightly longer in the tooth may be tempted to scoff at this, but our market is full of jargon and terminology that is entirely unfamiliar with a new generation of borrowers and people with new borrowing requirements.

“I’m worried that Shared Ownership’s terrific opportunity to help people get on the property ladder is being diminished through clumsy terminology, so maybe a rebrand is in order. Shared deposit schemes, low deposit schemes and deposit deferral schemes are just some examples of terms that would position the product in a more appropriate light.

“I think any re-branding or re-positioning would benefit the whole industry, and we would welcome the involvement of lender and broker trade bodies to support this.”

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