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Mortgages: Women rule the roost

Wednesday, March 10, 2010

Source: Catherine Deshayes

Women have more financial control than ever before and will control £68 billion worth of mortgage borrowing in the UK in 2010.

New research from first direct released to mark the launch of its new repayment mortgage, reveals female home owners are set to contribute £40 billion more to the property market today than their female counterparts of 20 years ago.

Yet despite this ever-increasing female borrowing power, we will be waiting until 2034 to see women's mortgage power equal that of men** if current trends are anything to go by.

The study of married and cohabiting couples reveals for the first time ever it is women who hold the balance of power when it comes to couples deciding which property to buy. 

A generation ago (1980) men well and truly wore the pants when it came to property decisions and were per cent more likely to make the final choice, however today the final say more often than not rests with women (18 per cent).

All things being equal

In households where both partners are in full-time employment, equality is fast approaching with women funding close to half (48 per cent) of all mortgage repayments.

And increasingly home ownership is a joint affair, with 62 per cent of current home buyers doing so with a partner and more than one in four couples (26 per cent) admitting both their incomes are essential to covering mortgage repayments (rising to two in five couples aged under-35).

Putting in the hours

The first direct findings reveal couples are putting a combined total of 322 hours into finding, buying and moving into a new home (that's equivalent to 46 full working days).

Women are shouldering the burden here, putting in 174 hours against men's 148. 

The longest time spent on a home move is found with buyers in Wales (145 days), followed by London (140 days) while the shortest moves are found in Scotland (94 days).

And it is the sheer length of time the process takes which is the single top cause of stress for couples buying a new home (33 per cent).

first direct mortgage expert, Jimmy Kelly, said: "Among younger home buyers, the largest causes of stress are securing a mortgage and dealing with solicitors, but older home buyers are more likely to be stressed about having to make a long-term inflexible financial commitment.

"first direct is traditionally recognised for its remortgage products rather than purchase products, however our new 85 per cent loan-to-value tracker is the start of a range expansion to help in all financial situations, ensuring flexibility to all home buyers."

Psychology professor and author of Sheconomics, Karen Pine, added: "It's very interesting to see women's growing financial prowess is having a direct impact on the property market and a quarter of shared households now rely heavily on both incomes to pay the mortgage.

"We know that tangible investments such as property are a financial priority for women. The female aptitude for planning and research means women are likely to make shrewd decisions when it comes to home buying".

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