More than a quarter of prospective and recent homebuyers have hidden or downplayed their spending habits from a partner or family member as they attempt to improve their mortgage prospects, research suggests.
Research from online mortgage broker Mojo Mortgages found 26% had concealed discretionary spending, including hiding purchases or deleting betting apps, during the homebuying process.
Financial secrecy extends beyond everyday spending, with one in four respondents maintaining a savings account their partner or family does not know about.
More significantly, 18% admitted concealing existing debts such as credit cards or personal loans, while 13% said they had misrepresented their salary or bonus.
YOUNGER BUYERS MOST SECRETIVE
The research found financial secrecy was particularly prevalent among 25 to 34-year-olds, with 68% admitting to some form of money secret.
Within this age group, 30% said they had specifically hidden or downplayed discretionary spending.
There was also a gender difference, with 64% of men admitting to at least one financial secret compared with 59% of women.
John Fraser-Tucker (main picture, inset), Head of Mortgages at Mojo Mortgages, says: “While it is understandable that buyers want to present the cleanest possible financial footprint to mortgage underwriters, keeping significant financial secrets, such as undisclosed debt or secret accounts, from a buying partner can build a shaky foundation for long-term financial health.
“Honest communication is vital when entering into one of the largest financial commitments of your life.”
‘HONESTY IS THE BEST POLICY’
Fraser-Tucker also warns buyers against withholding information from their mortgage broker or attempting to make their financial position appear stronger than it really is.
He says: “Honesty really is the best policy when applying for a mortgage, both between partners and with your mortgage broker.
“Hiding debts or overstating income can lead to severe delays, unsuitable products, or even declined applications, whereas total transparency allows your broker to match you with the best possible deal for your actual circumstances.
“That being said, if you find yourself managing finances alongside a partner who is financially unstable or reckless, holding back a personal emergency fund isn’t just understandable, it’s smart planning. Never stretch yourself so thin that you pour every last penny into a property without keeping an independent rainy-day fund to protect your financial safety.”
