In This Article
Does betting affect mortgage?
It is common for somebody to ask whether betting will influence a mortgage application. Different lenders uniquely underwrite applications.
This means that their tolerance for things such as betting will vary from one lender to another.
Lenders must lend responsibly; this means that they need to make sure they are comfortable that lending money is the correct thing to do on each application.
Betting transactions will vary significantly from one applicant to another.
What one person considers a large bet, another would consider a small bet.
When looking at betting transactions on the bank statement of an applicant, the most important thing to work out is whether this is a sporadic hobby at somebody’s leisure or whether it is a dangerous habit that is getting out of control.
If it’s the latter, lenders will be very wary of lending to this applicant if they believe they are in danger of putting themselves in a bad financial position.
If it seems that the gambling transactions are related to betting that takes place from disposable income and that the mortgage applicant would only do this when they have the spare funds, a lender is likely to treat the applicant differently.
If you are unsure how a lender will view your betting transactions, you should look for an experienced mortgage adviser who can review your bank statements and give you their opinion. You can find more information about How Can My Bank Statements Affect My Mortgage Application?
If you believe that your betting is becoming out of control and will affect whether you can pay your mortgage, you should think carefully about whether you should be making a commitment like this.
If you need advice on gambling and how to stop it, a helpful website is BeGambleAware.
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Can mortgages be declined for gambling?
Lenders can decline mortgages for any reason if they are not comfortable with the application.
This means that they may decline the mortgage if they see gambling transactions on an applicant’s bank statements and feel that the betting is not at the applicant’s leisure.
Lenders must show that they are lending responsibly, so if they have a reason for concern about a person’s finances, they have to make the right decision to protect the applicant and the lender.
One lender’s opinion on whether somebody’s betting is out of control may be different from another lender’s view on the same thing.
This means that somebody may be placing bets every day, resulting in one underwriter feeling that they would not want to offer the mortgage.
A different underwriter working for a different lender may believe that although regular, the betting is under control and from disposable income only and therefore are happy to offer a mortgage.
In this situation, you should talk to a mortgage adviser to explain the betting transactions and the financial position that you are in, so they can do some research and talk to lenders accordingly.
There is not necessarily a certain amount of betting that takes place before a lender considers the betting excessive, as this will be subject to the lender and underwriter’s discretion.
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Does betting affect mortgage on buy to let property?
As with residential mortgages, excessive betting may affect a buy to let mortgage application.
Buy to let mortgages work differently from residential mortgages in that the main concern for a lender is the rental income the property is expected to generate.
Having said this, buy to let mortgage lenders still need to sense check applications to ensure that an applicant is in a solid financial position to pay their buy to let mortgage.
Some buy to let mortgage lenders have no minimum income criteria. However, they do still ask for details of an applicant’s income along with their outgoings. This is to ensure the applicants are in a good financial position.
If, when reviewing bank statements, it was evident that the applicant had a betting problem that did not seem to be under control, the lender may then decline the buy to let mortgage.
If you are thinking about taking out a buy to let mortgage with betting transactions showing on your bank statements, you should speak with an experienced mortgage adviser.
Does betting affect credit score?
Many people ask ‘will gambling affect my credit?’ Betting does not usually affect your credit score as payments to gambling websites are not traditionally contracted in, therefore do not show on a credit file.
A way, however, that betting may affect your credit score is if you are borrowing excessively to do it.
For example, if your overdraft is at the maximum amount of its facility due to poor cash flow from betting, it may adversely affect your credit file.
Furthermore, if you have been taking payday loans to get through the month due to money you have spent on betting, the payday loan could negatively affect your credit file.
You can go to Check My File and sign up for a free trial if you want more about your credit history.
Would playing the lottery affect a mortgage?
It is doubtful that playing the lottery would affect a mortgage application.
For a lender to be concerned that somebody’s lottery payments were enough to influence them to pay the mortgage, they would need to spend a large amount of money weekly on the lottery.
For instance, if an applicant had an online account with Lotto spending £100 per week, the lender may not think that this is harmless fun or something to be concerned about.
However, it is unlikely that a lender would not offer a mortgage for regular lottery play where this is clearly from somebody’s disposable income.
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How long should I stop gambling before taking a mortgage?
If you are planning to take a mortgage, you should consider whether you are in the correct financial position to do this.
If you believe you are gambling excessively, perhaps now is not the right time.
Some people in this situation may stop gambling for several months before they are happy that they do not rely on this habit.
If you are gambling to the extent that it affects your monthly budgeting for more important things, you should consider taking support, so things do not get out of control.
If you plan to stop gambling temporarily to then qualify for a mortgage because you didn’t before, this could be a dangerous way to approach borrowing money.
You should talk to a professional mortgage adviser and be open with them about the amount you spend on gambling and what you plan to spend when the mortgage completes so you do not put yourself in financial danger.
Most mortgage brokers will offer a free consultation so that you know your options.
Do banks check if you gamble?
Banks may check gambling when they are underwriting your mortgage application.
Lenders often ask for several bank statements, such as 3 to 6 months, to assess your monthly expenditure.
If regular transactions are shown to bookmakers or other gambling institutes, this would likely be how a lender learns about your betting transactions.
They may not always find such transactions, but if you are gambling to a point where it may affect your ability to pay your mortgage or other outgoings, you should seriously consider whether taking a mortgage at this time is best.
It would help if you always take professional advice when applying for a mortgage.
Conclusion
Betting transactions showing on bank statements do not always affect a mortgage.
If betting is a hobby of the applicant and is under control, lenders will usually be flexible towards the betting transactions.
If the betting seems more severe than this and someone is likely to be in an unfavourable financial position and unable to pay their commitments, this may cause the lender some concern.
An experienced mortgage adviser would be able to understand your full position before recommending accordingly.
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They are experienced, which can boost your chances of being approved.
