Online Gambling Mortgage Application

Applying for a mortgage can be a tricky process for anybody, no matter what their age or financial situation. There are multiple factors that can affect a mortgage application, some of which you may not have considered previously.

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• Gambling and mortgage applications generally don’t mix, so getting a mortgage if you gamble can be difficult, as many lenders deem such activity as a high indication of risk, so there is a higher chance of being refused mortgage due to gambling. The most common issues we are asked about are.
• Report your gambling winnings on your mortgage application form in the section titled 'other income' or 'assets.' The winnings are more appropriate for 'other income' if they come in regular payments over time. A single windfall should be listed under 'assets.'

One of the first things a lender will look at is your credit score. Again, this can be affected by various circumstances, but you may not have considered that a leisurely gambling habit could have its own consequences.

The mortgage application process

When you first apply for a mortgage, your chosen lender will assess your household income including your basic salary plus any extra income such as freelancing or benefits.

During this process, the lender will ask for documentation of your bank accounts, including copies of your statements for the past three to six months. Here, they'll be able to see your regular transactions, so it’s wise to keep an eye on your deposits if you’re a regular player.

Will online banking deposits affect my application process?

There is no clear-cut answer for whether or not a mortgage lender will refuse to lend you money based upon your gambling deposits. However, if they can see regular payments into online gambling operator accounts, these may present a cause for concern.

Why lenders have to look into your spending habits

The mortgage lending process has not always been so strict, but as most of us will recall from the credit crunch of 2007, being lenient can have its setbacks.

In 2014 and later in 2017, regulations were introduced for lenders which meant that they had to assess the affordability of a loan in much more detail. This included the aforementioned review of transactions – regular online gambling payments have been known to make lenders think twice.

Why gambling may deter lenders

Mortgage lenders don't pass judgement on applicants – they merely need to assess the risk of lending out thousands of pounds at a time.

However, statistically speaking, “problem” gamblers have less chance of having a healthy savings account, which in turn will affect the amount to which they can put towards a deposit and ultimately influence the outcome of their application.

There is no need for doom and gloom, however, as the majority of gamblers are not problem gamblers and just like to indulge in an occasional fun habit. Keep an eye out for any of these signs if you’re thinking of applying for a mortgage any time soon:

• Spending less time with family and friends, and more time gambling

• Depositing more money than you can reasonably afford

• ‘Chasing’ bets to recover losses

• Losing enjoyment in gambling

To stay on the safe side when it comes to impressing mortgage lenders, there are a few pointers that you can bear in mind.

Improving your credit score

A credit score is a rating out of 1,000 (sometimes it can be out of 700) that determines your reliability as a person with credit. Personal wealth has no bearing on this. Instead, it is actually better to accumulate a small amount of debt, for example, a mobile phone bill, and continue paying this off in regular instalments to prove that you can maintain regular payments.

The beauty of a credit score is that it changes month by month – sometimes for better, sometimes for worse! You may find that “silly” things, such as small expenses like taking out a new mobile phone contract, affect your score by a few points.

However, your score can also increase over time. Sometimes this happens naturally as time wears on, for example, if you carry on paying off regular payments such as credit card bills.

You can also improve your credit score by paying off any old debts you might have. So, if you have an old store card that could do with knocking on the head, try taking a little out of your savings – your credit score will appreciate it.

Stop gambling

This is, of course, the last resort for those whose gambling deposits may look unfavourable on a mortgage application. However, as mentioned above, credit scores can improve over time, so if you need to tone down the gaming for a few months, it might be a worthwhile investment in the future.

If you’re not sure how to limit yourself when it comes to gambling, you can try out several different methods including a ‘time out’ or even self-exclusion, which can freeze your accounts for up to six months.

Set up a new bank account

If you’re not ready to stop gambling altogether, then your mortgage lender only needs to assess the accounts from which you make regular payments – for example, bills and taking wages. You're within your rights to set up a new bank account or to simply use an existing one which may be inactive.

Be careful, however – you need to monitor this bank account just as much as you would your main accounts. Transactions are still being made, so you should still keep a keen eye on your spending.

What not to do

Believe that winning at online gambling will satisfy a mortgage lender

Just because the money you’ve invested in gambling is going back into your account, does not mean that mortgage lenders will class this as a reliable source of income!

Take out a loan to pay off gambling debts

If your habits have got to the point that they need a loan to pay them off, a mortgage lender will smell this a mile off.

Keep on gambling if you have a problem

Sometimes, it might take others to convince you that a once leisurely pursuit is now too much time spent gambling. Consider a limit on your account if you identify with any of the statements listed above.

A mortgage lender is far more likely to judge your credit score than a few harmless bets. Pay your debts and be transparent with your spending, and the rest should be easy!

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.

Online Gambling Mortgage Application Status

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.

Online Gambling Mortgage Application Form

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.

Online Gambling Mortgage Application Programs

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.

Online Gambling Mortgage Application Approval

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.

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.

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.