Just 31% of women are actively overpaying each month in a bid to pay off their mortgage debt faster, according to research from Sprive.
The independent findings discovered that on the whole men take the lead when it comes to managing the mortgage, whether this is finding a mortgage, switching to a different provider, or overpaying when they can.
Jinesh Vohra, the founder of Sprive, said: “I’m really surprised by the results. My personal experience is that more often than not women tend to take charge of household finances – whether this means taking out an ISA or looking for the best credit card.
“I’m keen to make everyone aware of the amount of money that can be saved just by putting the equivalent of a few extra pounds a day towards their mortgage.
“With interest rates rising quickly, making overpayments in the right way is a great way of reducing the amount of interest you will pay your lender.”
Economy-conscious women are therefore being encouraged to take the plunge and take control of their mortgage which is for many their largest household commitment.
Vohra added: “It may sound contradictory but massive savings can be had in the long run if people – and more women in particular – simply choose to overload their normal monthly repayments, and we want to encourage more women to become as savvy with mortgages as they are with everything else.”
For example on a £250,000 mortgage at 3.5% with 25 years remaining, paying off just the equivalent of £3 a day would reduce the interest you pay by over £14,000, enabling the homeowner to become mortgage free two years and six months earlier.
Vohra continued: “Of course, it’s important you need to make sure you have enough money to pay for the essentials and if you have more expensive credit card debt then you focus on paying that off first.
“However, there are plenty of reasons why putting your spare cash towards your mortgage just makes sense – you will pay your lender less interest; you’re likely to save much more than leaving that money in the bank; you’re more likely to get access to cheaper deals when you remortgage – and, of course, not having a mortgage gets you much closer to financial freedom.
“There is research out there which shows women are typically more independent than men, leaving home at an earlier age and, increasingly, buying their first homes alone – and today’s generation of single, financially independent women are now responsible for almost a quarter of all new mortgages as they put independence, careers, and property ahead of families and children.”
In the 1970s working women were refused mortgages in their own right because relatively few were employed continuously.
Today, because of the gender pay gap, the stumbling block to securing a mortgage is much more like raising the deposit on a property.
Research suggests that saving for an 18% deposit on an average property priced at £235,673 would take a man on an average salary six years, one month, and 22 days. The average female salary would take about another eight months.
However, last year saw 18% of mortgages taken up by single women (as opposed to 9% granted to single men), while married couples accounted for 62% of the market.
Vohra said: “Whether in a serious partnership or married, when it comes to mortgages, women should not take a back seat.
“Today, they are a real force to be reckoned with in the housing market.”
