Women face barriers to homeownership, says co-founder
The mortgage industry needs to adopt a more inclusive approach to lending that helps women overcome some of the barriers to homeownership, suggests an award-winning brokerage that’s focused on female borrowing needs.
Claire Towe, who co-founded Meet Margo in 2022 with her husband Matt (both pictured), acknowledges that getting on to the property ladder is tough for anyone. But, she believes women face specific challenges which can make it even harder, especially in terms of affordability,
“When it comes to homeownership, women face a series of financial barriers, both societal and personal,” Towe told Mortgage Introducer.
One of the most significant challenges, she observes, is the gender pay gap. She cites recent data from the Fawcett Society suggesting that, on average, women in the UK earn 11.3% less than men, making it harder to save for a deposit.
Women are also more likely to face career interruptions or reduced working hours due to caregiving responsibilities such as having children, points out Towe, which means their earning potential and borrowing power are significantly impacted and add to their financial strain when trying to get on to or move up the ladder. Furthermore, women tend to live longer with smaller retirement savings, which again affects their financial resilience.
“These combined challenges mean that women need tailored support to help them navigate the homeownership journey,” said Towe, “To address this, we need a more inclusive approach to lending that looks beyond traditional income metrics. It would be great to see more lenders considering the full financial picture of women, from flexible work to the costs of raising a family. Introducing options like lower deposits or reduced rates that account for the pay gap could make a real difference.”
She added: “As long as the gender pay gap exists, so will the gender housing gap. Achieving real equality in the property market will take a concerted effort from the industry, policymakers, and advisers to level the playing field."
Read more: International Women’s Day 2024: Taking stock of mortgage’s progress on equality
How important is financial knowledge for women?
Financial education is essential in building confidence, especially for women navigating the home-buying process, believes Towe.
“Many feel uncertain simply because affordable, accessible advice isn’t always within reach,” she said. “That’s why it's so important to make expert guidance more available, whether through reduced fees or by delivering advice in a way that resonates with their unique needs and experiences.”
Brokers have a key role to play, Towe suggests, keeping customers updated on rate changes and market shifts, to help them feel informed and in control.
“It’s also important for advisers to recognise the value they bring, particularly on social media,” she noted. “By using these platforms to demystify what’s really happening in the market and why, we can position ourselves as a trusted voice of reason. This not only builds trust and eases worries but encourages customers to work with us and recommend to their friends.”
Towe set up the business to provide mortgage and protection advice, helping women take control of their home finances, regardless of the barriers standing in their way. An appointed representative of PRIMIS Mortgage Network, it’s just won a top start-up honour at the 2024 Great British Entrepreneur Awards in London.
The brokerage combines a no-fee model with technology, including an adviser app, which guides homeowners through the remortgage process. It has a team of 14 mortgage and protection experts who work remotely across the UK.
Meet Margo identifies optimistic signs in the market currently, particularly with mortgage rates generally becoming more affordable, compared to the highs of mid-2023. It is seeing more first-time buyers and home movers, which it believes is a positive shift from last year, when remortgaging dominated the market.
“However, the ongoing shortage of available homes is still a major hurdle,” said Towe. “With demand continuing to outpace supply, house prices remain high, making it even more challenging for women and first-time buyers to take that first step onto the property ladder.
“Although we've seen a slight increase in mortgage rates recently following Labour's autumn Budget announcement, we're optimistic that the market will continue to stabilise in 2025.”
She added: “We're hopeful that higher loan-to-value (LTV) options will become more accessible, particularly in the mid-4% range for fixed-rate products, making homeownership more achievable for a broader range of buyers.”
