The term “shared ownership” is acting as a barrier to the very borrowers it is designed to help, according to Just Mortgages.

The brokerage suggested that clients regularly misunderstand who the scheme is targeted at and what the term really means.

Based on the feedback from across its broker network, Just Mortgages said 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 first-time buyers without a deposit but it can also be appropriate in situations where relationships break down, Just Mortgages said. 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 stated 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.

National operations director at Just Mortgages, John Philips, said there is “clearly an issue to be addressed” with shared ownership.

“Recent anecdotal feedback from some younger borrowers revealed that they actually thought shared ownership meant sharing the property and not living on their own,” Philips said. “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 completely unfamiliar with a new generation of borrowers and people with new borrowing requirements.

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

“I think any rebranding or repositioning would benefit the whole industry and we would welcome the involvement of lender and broker trade bodies to support this.”

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