Just Mortgages has signalled it would like to see the shared ownership scheme rebranded – why?
Just Mortgages has said that shared ownership requires a rebrand in order to position the product more appropriately and enable it to be found more easily in searches online.
John Phillips (pictured), national operations director at Just Mortgages, said even a simple name change would improve the productivity of the scheme.
Shared ownership – rebrand
“Potential borrowers are likely to be searching for key words and phrases such as ‘mortgage deposit help’ or ’no mortgage deposit’, and the term ‘shared ownership’ is unlikely to be in their vocabulary, and therefore not appear in searches,” he said.
As an absolute minimum, Phillips believes the market needs to make sure that the right products appear in searches when borrowers are looking for help.
“Even the name ‘deposit support mortgage’ would have better search engine optimisation (SEO), and do what it says on the tin,” Phillips said.
Phillips added that following feedback from Just Mortgages’ broker network, clients have been regularly misunderstanding who the shared ownership scheme is targeted at, and what the term truly means.
He said there are also misconceptions around what properties would be acceptable under shared ownership, what rates are available, and how long the process may take.
Shared ownership – benefiting consumers
Phillips believes that a rebrand of shared ownership has two significant advantages, the first being viability and the second, accessibility.
“By undertaking a rebrand, providers have the opportunity to embark on consumer campaigns to promote all of their applicable products as if they were new, and this will generate interest from consumers,” he said.
Secondly, Phillips said a rebrand will help consumers identify the products as a solution to them getting on to, or back into, the housing market.
Simply put, he believes the name should reflect the key characteristic of the product, so that consumers are aware that a ‘deposit support’ mortgage will help them buy a home.
Shared ownership – education to avoid misinterpretation
Phillips said, currently, shared ownership is a product that is sold, not bought. He believes potential homeowners are often unaware of the scheme, or, if they are aware of it, they are unsure how it relates to them.
As a result, he said shared ownership is often at the bottom of a decision tree when other routes have been exhausted.
“Deposit support mortgages, if that is the name chosen, should be positioned in literature and brokers’ conversations in the very first instance, as well as being a prominent option in all first-time buyer conversations,” he said.
Phillips said banks, building societies and other lenders have a terrific opportunity to launch a grass roots campaign to promote these mortgages and educate potential borrowers.
“A rebrand will draw attention to the product and target the people it is designed to help,” he added.
Riz Malik, director at R3 Mortgages, said that if rebranding the shared ownership scheme entails educating and raising awareness, he believes it is a fantastic idea.
“However, before you rebrand the scheme, I believe it should be taken back to the drawing board and simplified,” he said.
Malik explained that communicating with scheme providers can be difficult, and the sales market is not as liquid as selling a property that is not part of a shared ownership scheme.
“There may be restrictions on who you can sell to, and potential buyers may be ineligible for shared ownership, or be put off by the restrictions,” he added.
Do you believe that a rebrand of shared ownership could benefit customers? Let us know in the comment section below.
