It takes single women 11 years and nine months to save the expected deposit to purchase a property compared to just three years for men, latest analysis from Mojo Mortgages reveals.

At a whopping difference of eight years and nine months the real-world impact of the gender pay gap is shocking. After analysing ONS data, Mojo Mortgages has uncovered the average post-tax income which showed men’s average monthly income at £2,568 – £422 (19%) more than women’s average monthly income of £2,146.

After removing average household bills and essentials (£889), Mojo Mortgages calculated monthly saving potential for both men and women on an average wage with men being able to save £531 per month compared to £377 per month for women –  monthly savings difference of £154 per month (40%).

MORTGAGE IMPLICATIONS

This £154 (40%) savings gap can also have significant mortgage implications. The reduced saving capacity means women face longer paths to mortgage-ready deposits, and may face the emotional toll of watching property prices potentially rise further out of reach.

Helen Lovell, a Senior Mortgage Broker at Mojo Mortgages says: “This £422 monthly gap directly impacts mortgage borrowing potential.

“The more you earn, the more you can borrow, which can determine whether you can secure a mortgage in your desired area or for your preferred property type.”

REQUIRED DEPOSITS

With the average flat / maisonette priced at £191,600 men would require a typical deposit of £19,160 (10%) but affordability rules mean women require a deposit of £53,648 (28%) a difference of £34,488 (+18%).

Most lenders cap borrowing at around 4.5 times a person’s annual salary, which is typically determined when applying for a mortgage in principle.

For men, a 10% (£19,160) deposit allows them to achieve a 4.3 mortgage-to-salary ratio, which is within typical lending criteria.

However, women need to save a 28% deposit (£53,648) to reach a 4.46 ratio, just meeting the standard threshold. That’s a staggering difference of £34,488.

AFFORDABILITY GAP

Lovell adds: “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.”

“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 9 years doesn’t just delay homeownership – it can significantly impact mortgage affordability, borrowing potential, and long-term property investment strategies.

GENDER PAY GAP

TUC analysis published yesterday revealed that the average woman effectively works for free for nearly seven weeks compared to the average man.

This is because the gender pay gap for all employees currently stands at 13.1%.

This pay gap means that this year Women’s Pay Day – the day women stop working for free compared to the average man – was Sunday 16 February 2025.

The union body says this is partly because women tend to be employed in lower-paid roles than men.

Additionally, women are more likely to work part-time to accommodate for extended caring responsibilities throughout their lives, therefore taking a significant pay cut.

DETRIMENTAL IMPACT

Jackie Leiper, Managing Director, Scottish Widows, says: “Despite vast improvements, women still earn less than men in the UK and this disparity has a detrimental impact on women’s financial futures.

 “Our latest Women and Retirement Report found a projected 30% gender gap in overall retirement outcomes – in part due to women starting to save later in life. While 19% of men start paying into their pension by 22 years old, just 14% of women do this.

“However, if we can encourage more women to start saving and get themselves invested earlier in their careers, and crucially, do all they can to avoid pausing contributions, better retirement outcomes for women will be on the horizon.”

GENDER CHALLENGES

She adds: “There are some actionable steps women can take to combat these financial gender challenges and secure a more comfortable retirement.

“A sensible first step to consider is establishing how much they currently have saved in their retirement pot, to see just how big the savings gap is.

“This may require tracking down any ‘lost pots’ from previous jobs using the Pensions Tracing Service and consolidating them in one place.

“But this effort from individual women must also be supported at policy level. Pension changes from the Government, including addressing the systemic factors which contribute to the gender pension and investment gap is vital too.”