Could Gambling Affect Your Mortgage Application?

When you’re getting ready to apply for a mortgage, most people naturally think about the big things.

Your salary.

Your deposit.

Your credit history.

Your existing loans and credit cards.

But there are also some everyday things you might be doing with your money that you perhaps wouldn’t expect a mortgage lender to take much notice of.

And one of those is gambling.

I’m not talking about someone putting the occasional £2 on the lottery or having a small bet on the football. The issue is more around regular gambling transactions and the overall pattern of spending.

What do lenders actually look at?

When you apply for a mortgage, a lender isn’t just looking at your salary and credit score.

They will look at your income, regular commitments and general spending to assess whether the mortgage is affordable. Depending on the lender and the application, you may also be asked for recent bank statements.

That means your bank account can tell a lender quite a bit about how you manage your money.

And this is where things like betting apps, online bingo, casino transactions and regular lottery spending can potentially become relevant.

What about the odd bet?

This is where I think it’s important not to panic.

Having the occasional bet doesn’t automatically mean you’re going to have a mortgage application declined.

Mortgage lenders have different criteria and different attitudes towards gambling transactions. Some may be more concerned about the frequency and amount being spent rather than the simple fact that a gambling transaction appears on your statement.

So if you occasionally put a couple of quid on the Grand National or buy a lottery ticket, that doesn’t necessarily mean you’ve suddenly become a mortgage risk.

It’s the pattern that can become more important.

Betting apps can make it very easy to build up a pattern

This is probably something that people don’t always think about.

With betting apps, it’s incredibly easy to place multiple bets throughout the week without necessarily thinking about how many transactions are appearing on your bank statement.

You might not consider yourself to be a regular gambler, but a lender looking through three months of bank statements could see regular payments going to betting companies.

And that’s something that could lead to questions around your spending and affordability.

There have been cases reported where lenders have declined mortgage applications because of gambling transactions, even where the applicants appeared to have sufficient income and were not relying on credit to fund their betting.

That doesn’t mean every lender will take the same approach, but it’s certainly something worth being aware of.

And it’s not just betting

This is the bit I think people might overlook.

It’s easy to associate this issue with someone who regularly bets on football or horse racing.

But the same principle can apply to other forms of gambling.

That could include:

• Betting apps
• Online bingo
• Online casinos
• Slot games
• Regular lottery spending
• Horse racing and other sports betting
• Gambling shops
• Other gambling transactions appearing on your bank statements

Again, I’m not saying that doing any of these things automatically causes a mortgage problem.

It’s about the frequency, amount and overall pattern of spending.

What about other everyday spending?

Gambling isn’t the only thing lenders can see.

Your bank statements can also show regular spending on things such as subscriptions, eating out, entertainment, childcare, travel and other household costs. These types of outgoings can form part of the lender’s affordability assessment.

Something that might seem completely insignificant to you can look different when it’s repeated every week or every month.

For example, £50 here and £50 there might not feel like much.

But £50 a week is more than £2,500 over a year.

That’s why it’s worth looking at your spending as a whole rather than focusing purely on your income.

Should you stop everything before applying for a mortgage?

Not necessarily.

I wouldn’t suggest suddenly changing your entire lifestyle just because you’re thinking about buying a house.

But if you’re planning to apply for a mortgage in the near future, it’s worth being aware of what your bank statements are showing.

If you’re regularly spending money on betting, bingo or other gambling, reducing that spending and building up your savings can obviously help your overall financial position.

And if something on your bank statements is likely to raise a question, it’s much better for us to understand it before an application is submitted rather than discovering it halfway through the mortgage process.

The biggest mistake is trying to hide it

This is probably the most important point.

Don’t move money around, open additional accounts or try to hide spending because you’re worried about what a lender might think.

If a lender asks for bank statements, they need to accurately reflect your finances.

It’s much better to be upfront about your circumstances and make sure the application is being considered by a lender whose criteria fit your situation.

Different lenders have different approaches, which is one of the reasons getting advice before making an application can be useful.

A mortgage application is about the whole picture

There’s no single transaction that automatically determines whether you’ll get a mortgage.

Your income, deposit, credit history, existing commitments, spending and overall circumstances all form part of the picture.

So if you’re planning to buy your first home, don’t just think about your credit score and how much you’ve got saved.

Have a look at your bank statements too.

You might be surprised at what a lender could see.

And if you’re not sure whether something in your spending history could cause an issue, it’s always better to ask the question before making a mortgage application.

Cheers,

Pat

Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.