Property prices 10% higher for single women
As a consequence of the latest government figures highlighting that the pay gap between women and men is 13% and widening, single women looking to raise a mortgage to buy a house need to find 50% more than their male colleagues as a deposit to buy a similar house, or settle for a house 10% cheaper.
Managing Director of Mayfair, Guy Moliterno, says, 'In the provinces, if we take an average first time buyers house price of £200,000, an 80% mortgage means that a male buyer would need to find a deposit of £40,000, and to get the £160,000 mortgage needs a salary of £40000 to meet the 4 times salary threshold. But a woman on a 13% lower salary would only qualify for a £140,000 mortgage, leaving them either having to find £60,000 for the deposit, or settle for a house at least 10% cheaper. And in London and other major cities the situation is worse. This is leading to an imbalance between single men and single women investing in their first home.'
Looking at the applicants Mayfair has dealt with since the financial crisis, it is now rare to see single women under the age of 35 applying for a first time mortgage.
Mayfair are lobbying to recognise the challenge and have a four point plan for women.
1. Don't be proud when it comes to paying….let the boys pick up the dinner tab and put your half into savings….ideally an ISA.
2. Don't blow your savings all on the new handbag……..recognise that you might have to put up a bigger deposit for your first house.
3. Think about house sharing to show an enhanced income, although the mortgage company would have to agree to this
4. Consider part ownership with a housing association to get on the housing ladder.