Credit: Getty
Money
Are you facing the gender mortgage gap? This is how much longer it takes solo women to save for a house deposit compared to men
By Amy Beecham
2 months ago
2 min read
We all know that the journey towards buying your first house has become increasingly difficult, thanks to rising costs and stagnating wages, but now research has revealed the presence of a ‘gender mortgage gap’ that is harming solo women, too. From earning less to needing longer to save, this is how much it could be impacting you without you even realising.
Even though the average price of a flat in the UK has increased by around 6.3% in the past year and mortgage rates have jumped at a record pace, homeownership is still something many of us aspire to. Around 80% of 18–34-year-olds admit to still wanting to own their own home despite facing significant financial obstacles.
With stagnating wages and inflation to contend with, we understand that the path may not be easy. However, like so many aspects of life, from the gender pay gap to the fact our pain isn’t taken as seriously – it’s worse for women, and particularly for those without a partner.
A new report by mortgage broker Mojo Mortgages has highlighted the presence of a ‘gender mortgage gap’, suggesting that men earning £422 more each month and being able to save 40% more means women have to save for nearly four times longer than men to afford a deposit for a first home.
According to calculations, on an average salary it takes men without partners three years to save the expected deposit, while women lag behind at an estimated 11 years and nine months. To add insult to injury, not only will it take longer, but they might have to save more than their male counterparts to be considered for lending.
Most lenders cap borrowing at around 4.5 times a person’s annual salary. Considering that the average flat/maisonette price in the UK is £191,600, for men, a 10% (£19,160) deposit allows them to achieve a 4.3 mortgage-to-salary ratio. Women, however, need to save a 28% deposit (£53,648) to reach a 4.46 ratio: a staggering difference of £34,488.
Credit: Getty
The increased cost of being single is nothing new: those without a partner face more financial pressure than ever, with a recent study by financial services provider Hargreaves Lansdowne estimating that single people pay, on average, £860 a month more than people living in couples. On top of that, YouGov data suggests that a third of all women are “somewhat” financially dependent on their partner.
But these figures are yet another bleak reminder of what we already know: that almost every area of life is harder for women.
“As our research shows, the gender pay gap translates into a substantial mortgage affordability gap. Women often need to save nearly three times the deposit amount compared to men to meet standard lending criteria. This creates a more challenging and prolonged path to property ownership for women,” Helen Lovell, a senior mortgage broker, admits.
“This near-decade difference represents more than just time; it’s a significant portion of a woman’s life spent in financial limbo. The extended saving period of almost nine years doesn’t just delay homeownership: it can significantly impact mortgage affordability, borrowing potential and long-term property investment strategies.”
Images: Getty
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