Can Gambling Affect Mortgage
Gambling can reduce your borrowing capacity Vicary predicted that an applicant who earns the average income of $82,436 but bets $50 per week would reduce their borrowing capacity by almost $32,000. If the amount that is betted increases to $200 a week, gambling would reduce their borrowing capacity by $127,000 – presuming they are able to get. Why does gambling affect my mortgage application? Mortgage companies want to be as sure as they possibly can be that you will have the ability to pay the loan back over the agreed period of time. If you are prone to gambling large sums, especially if you are using credit, i.e. Using credit cards, living within your overdraft etc. Will Gambling affect getting a mortgage? I’m going to need to get a mortgage in about 4 months as my place will be ready around that time. So I was wondering if gambling will affect me getting a. What mortgage lenders are concerned with is that the individual in question will prioritize gaming over making their loan repayments – never an advisable thing to do. Getting a Mortgage Sorted. At JackpotCity, we have a raft of measures in place to support responsible gambling and to encourage our customers to have fun.
- Will Gambling Affect Mortgage
- Can Gambling Affect Mortgage Rate
- Can Gambling Affect Mortgage Rates
- Can Gambling Affect Mortgage Payments
- Can Gambling Affect Mortgage Payment
It probably won’t surprise you that gambling and mortgages generally don’t mix well. When a bank lends you money for a mortgage loan, it means they trust you will be able to pay it back. However, if they see that you’re an active gambler, then this may go against your application.
However, it is important to note that 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 put a small bet on every now and then.
How will gambling affect my mortgage application?
If you’re a professional gambler and you want to use your winnings as evidence that you can afford to take out a mortgage, the banks see this as being a lot riskier than someone who has a job and gambles occasionally, so you may come across a few challenges. However, being a professional gambler and getting a mortgage isn’t impossible. Some 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.
You may argue that professional gambling is no greater risk than being self-employed…but lenders see it differently. Gambling is deemed more of a risk than being self-employed especially if there is no trace of regular savings but a build-up of debt instead.
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 application being declined.
When won’t gambling affect a mortgage application?
When lenders conduct their affordability checks, they will look at your bank statements from the previous 3-6 months. This means that any gambling during this period will be seen by your potential lender. The primary concern of the lender is that you aren’t getting yourself into debt by funding your gambling. If you’re gambling using your own money and you’re not in any debt, then this is unlikely to have an impact on your mortgage application.
If you only put the odd bet on here and there, you won’t need to worry about gambling affecting your mortgage application. However, it is important to be mindful, if your finances begin due to betting, then this may begin to affect things.
How to get mortgage approved
If you do gamble and you’re worried whether you can get 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 shows that you’re responsible when it comes to your finances.
- Make regular savings- If you can evidence that you have a savings account that you regularly pay into, the lender will see you as a low-risk borrower.
- Good credit history- Work on your credit score if required. Having a good credit history improves your chances of getting a mortgage.
- Stop gambling- The most obvious, but this can only happen if you want to stop.
Get the right mortgage advice
Booking an appointment with a mortgage broker can help you get the advice you need to get yourself onto the property ladder. Your broker will be able to address any queries 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 previously been refused a mortgage due to gambling, then it may be the right time to seek advice. Visit the GambleAware website for help with a gambling addiction https://about.gambleaware.org/.
For further information call: 0800 652 6649
Email: scotland@mab.org.uk or visit: mortgageadvicebureau.com/scotland
Your home may be repossessed if you do not keep up repayments on your mortgage.
There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
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?
Will Gambling Affect Mortgage
So what happens if you only ever gamble small amounts here and there?
Can Gambling Affect Mortgage Rate
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.
Can Gambling Affect Mortgage Rates
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.
Can Gambling Affect Mortgage Payments
Can Gambling Affect Mortgage Payment
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.