Young people frequently withholding student debts in mortgage applications
Around a third of people younger than 35 would conceal their student debt while applying for a mortgage or have already done so, Viisi Hypotheken found in a survey of over a thousand young people. Two years ago, that percentage was twice as small, ANP reported.
80% of poll respondents said they were driven to do that by high house prices and the few available homes.
The percentage of young individuals who are willing to outbid is likewise high, at 50%. Higher-educated young people are far more willing to offer more than asking price than those with only a secondary or vocational degree. According to Viisi Hypotheken, highly educated young people are also more likely to rely on their parents for financial assistance.
Furthermore, in order to get an advantage in the race for a home, more and more offers are being made without reserving the funds. According to Viisi Hypotheken representative, Hergen Dutrieux, that is highly risky. Bidders are still obliged to pay 10% of the purchase price in case their funds don’t come about.