More than one in four FTBs hide spending habits – Mojo Mortgages
26% concealed discretionary spending, including by deleting betting apps, hiding purchases or pausing regular spending.
More than one in four prospective and recent first-time buyers (FTBs) hide or downplay spending habits during the mortgage application process, research from Mojo Mortgages found.
26% concealed discretionary spending, including by deleting betting apps, hiding purchases or pausing regular spending.
A quarter kept a savings account secret from their partner or family.
18% concealed credit card or personal loan debt, while 13% lied about their salary or bonus.
Financial secrecy was most common among people aged 25 to 34, with 68% admitting to at least one hidden money habit.
Within this group, 30% had downplayed or concealed discretionary spending while buying a home.
People aged 55 and over were the least likely to keep financial secrets, although just under 55% still reported some form of private financial management.
Men were more likely than women to admit to at least one financial secret, at 64% compared with 59%.
John Fraser-Tucker, head of mortgages at Mojo Mortgages, said: “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 really is the best policy when applying for a mortgage, both between partners and with your mortgage broker.”
Fraser-Tucker added: “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.”
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