Female Applications for Specialist Finance Soars Due to the Pandemic
Bluestone Mortgages have released interesting statistics regarding the applications they have been receiving, in particular from women, between October 2020 and March 2021, showing a rise of 38% in individual female cases requiring specialist lending solutions. There was also a significant increase of 37% in applications for joint female borrowers during the same time period.
These figures show a clear indication that women have been experiencing extreme financial hardship over the pandemic, mostly due to job loss or impaired credit problems, leading to their exclusion from mainstream loan and mortgage markets.
Women have been disproportionately affected by the multiple lockdowns, with female dominated industries, such as hospitality, beauty and tourism, being the hardest hit by the pandemic. Figures released by the Office of National Statistics revealed female unemployment had risen by 174,000 from March to December 2020, and it was more likely that women would be placed on furlough than their male counterparts.
The pandemic has left a huge part of the female population in a vulnerable financial situation, creating the need for specialist financial products. Bluestone Mortgages has stated that they expect this to a be a long term predicament as more and more women find themselves in a similar position, prompting the industry to tailor their lending to meet individual needs.
MD at Bluestone Mortgages, Steve Seal, commented:
“The impact of the coronavirus crisis was felt particularly by women, with this group more likely to have faced furlough, unemployment and financial hardship over the last year. These factors have the potential to significantly impact an individual’s credit score which could, in turn, mean that they are unable to access mainstream lending. Today’s figures highlight this fact, and we foresee this reality lasting for some time as women navigate the fallout of the crisis and look at alternative ways of securing financing.
“This signals a major opportunity for the complex credit lending market to evolve and develop, and lenders and advisers in this industry must work together to capitalise on the growth in demand that is expected from female borrowers over the coming years. Ultimately, lenders and advisers serving the complex credit lending market will need to support a growing cohort of underserved borrowers over the long-term, so now is the time to prepare accordingly.”