There have been calls to tackle financial inequality after it emerged barriers to homeownership are having a greater impact on women than men.
A survey by specialist bank, Aldermore, has revealed despite the fact more women dream of owning their own home, a greater number also see it as an unachievable prospect compared to men.
The study found women were more likely to see saving for a deposit as the biggest obstacle to buying a home with 33% of females compared to 20% of males admitting this was a challenge.
Gender pay gap
One of the main factors influencing this, Aldermore suggested, was the gender pay gap. In 2018 the difference between men and women’s pay was 8.6% among full-time employees.
This can have a dramatic effect on how much women applying for a mortgage alone can borrow. Indeed, research by mortgage broker Coreco found the average earning of a female who is the first applicant on a mortgage is 65% what the average male’s would be.
It’s no surprise then that women are less likely to imagine themselves applying for their first mortgage alone. The UK Women’s Budget Group backs this up, estimating women are the ‘household reference person’ in only 31% of cases where someone is buying with a mortgage.
Removing hurdles
Sue Hayes, managing director of retail finance at Aldermore, said the mortgage industry needed to ‘work together’ to provide a more straightforward process and remove hurdles for all first time buyers – including women.
She said: “It is concerning to see the barriers to homeownership having a greater impact on women.
“We need to address financial inequality in our society to help tackle gender disparities so that becoming a homeowner is achievable for all.”
Independence
Aldermore’s survey also found that women felt harder hit by the cost of renting with 76% of women compared to 67% of men finding the costs a struggle.
But they were also less likely to consider living with family to help save the money for a mortgage deposit – only 28% of women compared to 38% of males said they would not move back home.
Women were also less likely to use the Bank of Mum and Dad for financial assistance, the study revealed.
