Online Gambling Mortgage
- How you run your current account is of the utmost importance when applying for a mortgage. Yes, it is true that online gambling is frowned up, the annual bet on the National isn't too bad but if you gamble a lot and are borderline for approval then it could be the factor that results in a decline.
- If you’ve been refused a mortgage due to gambling, then now might be the right time to turn things around and seek advice. Visit the GambleAware website for help with a gambling addiction. Because we play by the book we want to tell you that Your home may be repossessed if you do not keep up repayments on your mortgage.
- With the proliferation of betting companies and the increasing opportunities for online gambling, this issue could become a much more significant obstacle to UK borrowers in coming years. If you do like a punt every now and then, make sure you take the necessary steps to prevent your gambling from affecting your mortgage application.
ONLINE gambling and evidence on your credit card statements of paying Paddy Power and other internet bookies is a 'red flag' that may stop you getting a mortgage, the Sunday Independent has learned.
Generally speaking, gambling and mortgages do not mix well. Taking out a mortgage means that a bank or building society trusts that you’re able to pay the money back. But if they see that you’re an active gambler, then this may go against your application.
However, there is a difference between those who gamble large amounts of money on a regular basis (including those who are professional gamblers), compared to those who might put a small bet on every now and then.
When will gambling affect a mortgage application?
If you’re a professional gambler wanting to use your winnings as evidence that you can afford to take out a mortgage, then you might come up against a few hurdles, as this is considered far more risky than someone who has a job and gambles occasionally on the side. That’s not to say that it isn’t impossible though. Those lenders who are willing to lend you the money might alleviate this risk by increasing the interest rate and only lending a small amount of money.
Whilst you may argue that professional gambling is no different to getting a mortgage when self-employed, gambling is still deemed as a riskier business than self-employment, especially if there’s no trace of regular savings but a build-up of debt instead.
Ultimately, you need to be aware that if you’re a professional gambler, this activity is seen as a risk and could result in your mortgage being declined.
When won’t gambling affect a mortgage application?
When lenders carry out their affordability checks, they look at your bank statements from the previous 3-6 months. Therefore, any gambling on your bank statements during this period will be seen by your potential lender. However, the lender is not going to judge you on what you chose to spend your money on. Their primary concern is that you aren’t getting into debt in order to fund the gambling, so if you’re betting using your own money, and you aren’t in debt, then this shouldn’t affect your mortgage application.
Similarly, if you only put the odd bet on here and there, then you don’t need to worry about gambling affecting your mortgage application. Just be mindful that if your finances begin to suffer because of it, then this may affect things.
How to get mortgage approved
If you do gamble and you’re worried about getting a mortgage, you could try the following things to help improve your situation and get yourself mortgage ready:
Clear your debts - Clearing off any debt you have shows that you’re responsible when it comes to your finances.
Regular savings - Again, it’s all about responsible lending, so if you can show that you have a savings account that you pay into regularly, the lender will see you as a low-risk borrower.
Good credit history- Having a good credit history improves your chances of getting a mortgage, so you should work to improve your credit score.
Stop gambling - The most obvious, but this can only happen if you want to stop gambling.
Get the right mortgage advice
Speaking to a mortgage broker can help you get the right advice that you need in order to fulfil your dream of getting on the property ladder. They’ll be able to address any worries or concerns that you may have about your spending habits.
At Mortgage Advice Bureau, we deal with people from all walks of life and we do not judge anyone's personal circumstances - we are simply here to help.
Get help for your gambling addiction
If you’ve been refused a mortgage due to gambling, then now might be the right time to turn things around and seek advice. Visit the GambleAware website for help with a gambling addiction.
Does gambling affect your mortgage application?
A borrower that gambles presents an increased risk to a lender. Think of it from their perspective; They’re lending out potentially thousands of pounds, so they want to feel sure that they’ll get it back. A person who frequently gambles chunks of their income may be less able to pay their mortgage on time and full.
A lot of people wonder just how strict lenders are when it comes to gambling and mortgages and because of uncertainty, some people avoid applying at all.
We’ve answered the most frequently asked questions around this topic to help you make an informed decision about how to apply for a mortgage after gambling.
Can a lender decline your mortgage application for minor gambling?
So what happens if you only ever gamble small amounts here and there?
Well, the good news is that the type of gambling, the amount of money you bet and the frequency in which you do it, can all play a part when lenders make their decision.
If your bank statements show a pattern of unaffordable, high risk betting, you may find your choice of lenders is drastically reduced. Lenders will compare the level of gambling in relation to your income so small flutters that don’t occur often or affect your finances may be accepted.
If you’re unsure about whether the amount you gamble could stop you from getting a mortgage, ask a mortgage broker for a quick call.
Can lenders see that I have gambled on my bank statements?
Yes, when you apply for a mortgage lenders will want to look at your bank statements from the past 3 months, to determine your affordability. Some lenders can ask applicants to go back even further and supply statements and proof of income from 12 months ago.
This is something to keep in mind if you’re applying for a mortgage in the near future as any
indication of gambling or overspending can be seen by the lender and may affect your mortgage application.
Can professional gamblers get a mortgage?
The nature of gambling is unpredictable and even those who derive their income from gambling will experience periods of fluctuation. Lenders look at affordability and income closely when assessing the risk of a borrower and periods of low income can create concerns about how the borrower will pay back their loan.
In most instances, lenders won’t accept income from gambling and will require the borrower to have income from a more predictable source i.e. a salary.
However, each lender has their own set of criteria when it comes to approving a mortgage for a gambler, professional or not, so even in instances where the borrower has been declined for a mortgage because of gambling, another lender may be found elsewhere.
Finding a mortgage lender that accepts gambling transactions
The key to finding the right mortgage for you lies in comparing a wide range of mortgage products, interest rates and lender agreements.
Without the knowledge of where to look or how to negotiate the best deals, it can feel like you’re taking a leap in the dark, especially when not all lenders display their rates or criteria on comparison sites.
Our mortgage brokers have access to hundreds of lender rates and have built up relationships with a variety of lenders across the UK. They work on your behalf to find the lenders that are most likely to accept you, while also aiming to save you money.
Are there things I can do to improve my mortgage application if I gamble?
The first thing to do if you’re worried that gambling will affect your mortgage application is ask a mortgage broker for their advice. They’ll take the time to listen to what you need from your mortgage and will review your circumstances to find the best possible route.
Online Gambling Mortgage Company
Depending on your circumstances, it may also be helpful to:
Reduce your debt to income ratio
Reduce the amount and frequency you gamble
Check your credit report for bad credit
Can having a larger deposit help?
Having a larger deposit of up to 30% can improve your choice of lenders and rates if you have gambling on your statements as with most lenders, the higher the deposit, the lower the risk.
Online Gambling Mortgage Application
This can vary between lenders, as can the amount you may need to upfront. To get an accurate reflection of what you may need to deposit as mortgage applicant who gambles, ask a professional who can calculate an estimate.