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Just Mortgages believes that the term shared ownership acts as a barrier to the very borrowers it is designed to help. They say feedback from across the broker network reveals that clients regularly misunderstand who the scheme is for and what the terms really mean.
Just Mortgages says it is also aware of many other common ownership misconceptions about what properties are acceptable, what interest rates are available and can be subject to the process.
Joint ownership is often positioned as a vehicle for first-time buyers without a security deposit, but it can also be appropriate when a relationship breaks down. In these situations, one of the partners often leaves the family home without having savings at their disposal, but with an income and salary that they are happy to support paying the mortgage. Just Mortgages believes this is her one of an emerging group of borrowers where shared ownership could help, but suggests the name may not be suitable for that borrower. are often left off the agenda because of the
John Philips, National Operations Director, Just Mortgages, said: Recent anecdotal feedback from some young borrowers revealed that they really thought community ownership was about sharing property, not living on their own.
“People with slightly longer teeth may want to scoff at this, but our marketplace is full of jargon and terms that are completely unfamiliar to new generations of borrowers and those with new borrowing requirements. .
“I worry that clumsy terminology is diminishing the wonderful opportunities shared ownership offers to get people up the real estate ladder, so perhaps a rebrand is needed. Shared deposit schemes , small deposit schemes, and deposit deferral schemes are just a few of the terms that better position the product.
“We believe that rebranding and repositioning will benefit the industry as a whole. We welcome the involvement of the lender and broker trade associations in supporting this.”
Maximizing shared ownership opportunities will be one of the topics of discussion at Just Mortgages’ upcoming New Build and Affordable Housing event in central London on Wednesday 19th April 2023.
The all-day event brings together key industry stakeholders from both lenders, housing and industry associations to discuss the latest trends and future prospects for new construction and affordable housing. Industry professionals can register for the event by visiting https://forms.justmortgages.co.uk/jmnbevent/.