More than a quarter of borrowers admit to "stretching the truth" when applying for a mortgage, according to "disturbing" findings of a new survey of homebuyers by UBS.

After a recent crackdown on bank lending standards, the survey of 1228 Australians who have taken out a home loan in the past two years found only 72 per cent provided information that was "completely factual and accurate".

A further 21 per cent of customers said the information they provided the bank was "mostly factual and accurate," and 5 per cent said their applications were "partially factual and accurate".

The remaining 2 per cent of borrowers chose not to answer this question.