A survey finds that many attempt to conceal their true monthly expenditure on childcare when talking to lenders.
One in six families say they have been denied mortgages or offered smaller loans because of their childcare costs.
Of those, 68% have attempted to conceal their true monthly expenditure on childcare in an attempt to secure a better deal from lenders.
Some relied on friends and family to look after their children temporarily, artificially reducing their outgoings to deceive banks during affordability checks.
uSwitch.com compiled the research, with a spokeswoman saying: “It’s worrying that many feel under pressure to conceal these costs during the mortgage application process, as this may have a severe impact on their ability to make repayments in future.”
The price comparison website also uncovered inconsistencies in the application forms sent out by lenders to determine a family’s eligibility.
Only 39% of borrowers were asked whether their childcare costs would decrease in the coming years, while 41% said their lender did not take the ages of their kids into account.
Mortgage rules have become stricter in recent years, meaning many lenders now take childcare costs into consideration when deciding whether to offer applicants a loan.
The changes were designed to ensure borrowers can truly afford to make repayments even if interest rates rise.
A recent report from the Organisation for Economic Co-operation and Development found the typical British family spends about a third of its monthly income on childcare.
The Council of Mortgage Lenders said: “The mortgage market review means that lenders must take into account all the key financial commitments of borrowers.
“That could mean that those who have to pay for childcare may not be able to borrow as much as others with a similar income who do not have these commitments.”