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The gender pay gap has by no means been extra in the highlight, with the monetary providers sector certainly one of the worst offenders. The mortgage market is not any exception.
At least, that’s the case for many mortgage lenders, that are required to report this info on account of their dimension. The image is way much less clear for dealer companies, that are sometimes sufficiently small to not be obliged to declare any pay or bonus gaps between genders — one thing equality campaigners inform Mortgage Strategy they wish to change.
The gender pay gap received’t go away by itself. We want concerted motion
So why is the gender pay gap so giant with huge UK lenders? What are they doing to shut it? And what can we find out about how brokers compensate women and men otherwise?
Big lenders, huge gaps
The 10 largest lenders management greater than 83% of excellent mortgages between them, in line with commerce physique UK Finance. They are a very good place to begin when figuring out how dangerous the gender pay gap is in the mortgage market.
Not solely do all of those giant lenders have a pay gap a lot greater than the nationwide common, however for a lot of this gap is widening — and the image is even worse with their bonuses.
More males in recommendation roles in comparison with admin can play an enormous half in creating imbalances
The common median hourly gender pay gap throughout all UK industries in 2024 was 7%, down from 7.5% in 2023, in line with the Office for National Statistics. These are the most up-to-date figures obtainable.
But all of the high 10 mortgage lenders paid males at the very least 24.7% greater than girls, on common, in 2024/25, their most up-to-date reporting 12 months. HSBC Bank has the largest median gender pay gap, of 44.9%.
The second largest is Virgin Money, at 35.7% for 2024. The lender doesn’t should report its pay-gap figures however does so voluntarily and in line with the calendar 12 months, reasonably than the monetary 12 months.
Next comes Lloyds Banking Group (35.5% for 2024/25), Coventry Building Society (31.5%), Barclays Bank (30.6%), Nationwide (29.2%), NatWest Group (27.7%), Santander (27.6%), after which TSB and Yorkshire BS, each on 24.7%.
Half of those lenders have elevated their pay gap 12 months on 12 months, particularly Nationwide (by 6.8%), TSB (2.8%), Lloyds (2.7%), Virgin Money (1.1%) and Yorkshire BS (0.9%).
The different half have lowered their pay gap from the earlier 12 months, particularly HSBC (by 3.4%), NatWest Group (2.3%), Santander (1.1%), Barclays (1%) and Coventry BS (0.2%).
We’re persevering with to discover methods to raised perceive the gender pay gap
Large lenders’ gender pay gaps look dangerous, however their bonus gaps are far worse.
The largest median bonus gap of 2024/25 was that of HSBC, at 70.7%, adopted by Barclays and Lloyds Banking Group (each at 56.8%), Santander (40.1%), Coventry BS (36.1%), Nationwide (35.9%), Virgin Money (33.7%), Yorkshire BS (29.7%), TSB (25.2%) and NatWest Group (17.7%).
The causes for gender pay gaps in the mortgage sector are various, however they embody extra males than girls occupying effectively-paid management and technical positions.
A UK Finance spokesperson says: “The monetary providers sector is dedicated to enhancing its gender pay gap and recognises that there’s extra work to be accomplished.
“One of the points that impacts pay-gap figures is the truth that girls are sometimes below-represented in senior roles. UK Finance and plenty of of our members are signatories to the HM Treasury Women in Finance Charter, which commits companies to supporting the development of girls into senior roles.”
Penny East, chief govt of the Fawcett Society, a girls’s rights charity, tells Mortgage Strategy this challenge is a selected downside in monetary providers.
This is a posh problem and there are not any fast fixes
She says: “We know that too many ladies don’t make it to senior roles on this sector — not as a result of they aren’t succesful however due to office cultures that conspire towards them, working insurance policies that don’t assist them and a childcare system that’s, at finest, dysfunctional.
“The gender pay gap received’t go away by itself and, if the chancellor goes to ship on her promise to shut it as soon as and for all, we’d like concerted motion and we’d like it rapidly.”
Lender response
Lenders say they’re working exhausting to deal with the gender pay and bonus gap.
A Lloyds Banking Group spokesperson says the agency prefers to make use of the imply determine when evaluating its gender pay gap as a result of this reveals a fall.
They say: “Our [mean] gender pay gap has lowered to 25.9% this 12 months, reflecting a rise in girls at senior ranges as we prioritise attracting and creating proficient girls. While there was progress, we recognise there may be nonetheless rather more to do.
We additionally should give attention to how we deliver new and various expertise into the sector, as this may assist to deal with the imbalance
“We firmly consider that firms with gender-various senior administration groups carry out higher, and we stay targeted on closing the gender gap and creating an setting throughout the organisation the place girls can thrive and obtain their profession ambitions.”
A Nationwide spokesperson says: “Our median gender pay gap lowered by 2.8 share factors between 2023 and 2024 on a like-for-like comparability, and our imply gender pay gap lowered by 0.7. However, 2024 figures are skewed on account of a one-off value-of-dwelling fee of £500 made in 2023, which elevated the common compensation of girls employed with Nationwide greater than it did for males.
“We are happy we have now made progress with our gender gap however know there may be extra to be accomplished. This is a posh problem and there are not any fast fixes, which is why we proceed to work exhausting to enhance inclusion and variety.”
A spokesperson for Virgin Money says: “We wish to create a financial institution that’s extra consultant of the communities we serve and we’re working exhausting to draw and retain expertise that can allow us to attain this. We are actually happy with the progress we have now made in advancing gender illustration in any respect ranges of the organisation.”
We have to see employers publishing binding motion plans that present how they may shut their pay gap
All the different high 10 lenders had been approached for remark.
Brokers slip via the internet
Since 2017, any UK firm with greater than 250 workers has been required by legislation to publish particulars of its pay gap by gender yearly. All of the huge lenders due to this fact accomplish that.
But amongst mortgage brokers it’s a lot more durable to work out the scale of any pay gaps as a result of most have fewer than 250 workers and do not need to publish this info.
For the two brokers that do, it appears the gender pay gap is way smaller than that of lenders.
The mortgage middleman sector affords a transparent alternative to push again. Flexible working, self-employment and entrepreneurial fashions are already effectively established
Only two mortgage brokers are giant sufficient to be required to reveal these figures: London & Country Mortgages (L&C) and Mortgage Advice Bureau (MAB).
MAB had a pay gap of 18% in 2024/25, down from 19% the 12 months earlier than, whereas L&C had pay disparities of 13.7% in 2024/25 and 14% in 2023/24 — a lot decrease than these of the giant lenders.
However, these two brokers have bigger-than-common bonus gaps, even by the requirements of the UK mortgage market.
L&C’s gender bonus gap was 75.9% in 2024/25, albeit this was a discount of 5.3% from 2023/24. MAB had a bonus gap of 40% in 2024/25, down from 42% the 12 months earlier than.
MAB chief folks officer Caroline Hill says: “At MAB, we consider a various and balanced workforce results in higher outcomes for everybody.
One of the points that impacts pay-gap figures is the truth that girls are sometimes below-represented in senior roles
“We’re dedicated to constructing an inclusive setting the place all people really feel valued, supported and in a position to thrive, and our commitments to closing the gender pay gap type a key a part of this.
“We’re persevering with to discover methods to raised perceive the gender pay gap, in addition to establish alternatives to assist lengthy-time period, optimistic change.”
On a journey
L&C Mortgages affiliate director of communications David Hollingworth says: “We know that, like many, we’re nonetheless on a journey on the subject of closing the gender pay gap. We might want to proceed to try to make enhancements however are decided to make L&C an setting the place all colleagues really feel they will construct a protracted and fulfilling profession.
“The monetary providers sector has notoriously struggled to draw extra girls. We nonetheless see disparity sometimes stem from the distribution by gender throughout totally different roles. More males in recommendation roles in comparison with administration, for instance, can play an enormous half in creating imbalances, notably on the subject of bonus funds.
We wish to create a financial institution that’s extra consultant of the communities we serve
“Nonetheless we have now taken steps to make enhancements to our insurance policies and processes to deal with this.”
Hollingworth says examples of this are L&C’s insurance policies on maternity and adoption, menopause assist, profession development and hybrid working.
Career disadvantages
The Association of Mortgage Intermediaries (Ami) says the mortgage gender pay gap is a “structural challenge” and sometimes not nearly unequal pay, nor about the below-illustration of girls in senior, greater-paid positions.
Ami senior coverage adviser Sabrina Grassler says many ladies face profession disadvantages after having kids, typically with restricted helpful alternatives offered for them.
One in 10 girls has additionally left the office on account of the menopause, with an extra 22% contemplating quitting, Grassler says, which reduces the variety of senior girls in the trade.
Workplace cultures conspire towards girls… and the childcare system is, at finest, dysfunctional
She provides: “Despite these realities, the mortgage middleman sector affords a transparent alternative to push again towards this sample. It’s an space of the market the place versatile working, self-employment and entrepreneurial fashions are already effectively established, and the place girls have the probability to guide their very own agency, develop their very own shopper base and work round different life commitments.
“Closing the gender pay gap isn’t nearly headline statistics; it’s about making certain extra girls have the alternative to guide, to remain in the trade long run and to thrive. We additionally should give attention to how we deliver new and various expertise into the sector, as this may assist to deal with the imbalance.”
Equal transparency
Equality consultants at the Fawcett Society say smaller companies ought to now be obliged to declare any gender pay gap — together with mortgage brokers.
East says: “Gender pay-gap reporting was introduced in eight years in the past and all of us hoped that employers would see their pay gap and take motion to shut it. That is just not taking place quick sufficient and it’s time extra was requested of them.
“We have to see employers publishing binding motion plans that present how they may shut their pay gap, and we have to see reporting prolonged to employers with fewer than 250 workers.”
We firmly consider that firms with gender-various senior administration groups carry out higher
The challenge of gender-based mostly pay and bonus inequality in the mortgage market is a critical one — and, for some companies, an issue that’s getting worse reasonably than higher. Lenders’ efforts to scale back these gaps are to be applauded, however the sector nonetheless has a protracted strategy to go.
Brokers, partly on account of their entrepreneurial, self-made nature, look like in a greater place than that of lenders.
But the uncomfortable reality is that they too should acknowledge that critical adjustments have to be made to make the market truthful to girls.
