Single Women Are Buying More Homes than Ever Before

Times have been changing, and now more single women buy homes than they ever have in the past. It wasn’t too long ago when single women would delay purchasing a home until they had found a life partner, had a high-paying job, or once they had done enough traveling and were ready to settle down. Nowadays, single women have put these barriers aside and are more likely to buy the homes of their dreams before reaching these milestones.

Women earn 13.4% less on average than men do, but more and more single females apply for home loans. It’s estimated that the applications for mortgages by single women had risen in June 2021 to 22% from 15.7% on a year-over-year basis. This represents one of the fastest-growing demographics for homebuyers, and the trend is continuing.

Low interest rates, along with government incentives for purchasing a home, have helped single women decide to move forward. However, these women are also taking the rising cost of real estate into account. They understand that if they put off buying a home, they may not purchase one soon.

Mortgages for Single Women

Since women earn a lower wage on average than men, they can’t borrow as much money. As a result, single women borrow approximately 20% less than the overall average for first-time buyers. 

Most individuals try to save up a deposit of at least 20%, but due to rising prices, they often realize that they may no longer be able to afford the property when they reach that goal. Sometimes it’s essential to act quickly when the right opportunity presents itself. There are mortgages available for individuals that don’t have a large deposit but want to enter the real estate market as quickly as possible.

Financial Security for Single Women

Purchasing a home also provides financial security for single women looking at their retirement options. In addition, many singles are realizing that they don’t need to have a life partner to own a home and that property ownership offers financial stability that is hard to find anywhere else.

However, purchasing a home doesn’t come without risks, especially when a single person is diving into the market. The individual relies on a single income to make the mortgage payments, and there is no backup income available from a partner. As a result, only half the income is available to pay the mortgage bills, but the living expenses won’t be evenly cut in half.

Handling a mortgage on your own can be an overwhelming proposition, so the decision to move ahead must be made carefully. Weigh the options of the financial security available versus the potential risks involved. 

There are pros and cons to everything in life, but it appears that many single women have decided that there are more pros to owning a home than there are cons. If you need any help determining whether taking a mortgage on a single woman would be right for you, feel free to talk to the 1st UK Money advisory team for more information.

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