Online Gambling Affect Mortgage Application

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Online Gambling Affect Mortgage Application

Online gambling affects mortgage app??? Hi, for the past few year i have been gambling online.the deposits were somethings big(ie 50-100) but mainly smaller like in 10s or 20s at a time!! This means that spelling out what sort of gambling you like to engage in – from online casino games to playing lotteries – should be detailed in your application. It is a part of your financial history and is just as relevant as how much you spend in the average month on groceries, insurance and repaying other loans you may have.

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.

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!

This post may contain affiliate links which means that if you click through to a product or service and then buy it, I receive a small commission. There is no additional charge to you.

Matched betting is a great side hustle and one of my favourites; it’s risk-free and a simple way to earn tax-free money.

Affect

When I started last year, there was a niggle at the back of my mind though as we were considering re-mortgaging. I wondered if matched betting would affect our mortgage application, especially because we were enquiring with a different lender.

Online Gambling Affect Mortgage Application Status

While they know it sounds appealing, I’ve had some readers say that they would prefer to stay away from matched betting if they are planning a mortgage application in the short-term as they are unsure of the ‘rules’. So I wanted to share my take on matched betting and mortgage applications, written in collaboration with Heads&Heads, a great matched betting service that I have come across recently.

Affordability checking with bank data

When you apply for a mortgage, the lender will work out your household income which includes your basic salary, plus any additional income from a second job, freelancing, benefits, commission or bonuses, rental income etc. To verify this, they will ask for confirmation of all the bank accounts you hold. They will want to see copies of statements for the previous 3 months, sometimes 6 months, so that they can review all the transactions.

If your transaction history is dotted with deposits and withdrawals from multiple betting accounts, it could look on the face of it that you have a gambling problem! (Remember matched betting isn’t gambling as the outcome is risk-free – but the deposits from your bank account are still going to a betting account).


There is some contention around whether these could be viewed unfavourably by a potential mortgage lender; it isn’t clear cut. If you are concerned, you could stop matched betting for a few months before your mortgage application. Buying a house is a big deal and you can always come back to money making after the mortgage has been agreed.

However, there are some less drastic ways around this:

Open another bank account

Open another bank account so your matched betting activity is separate to your household transactions. In my experience, sending our potential lender our main current account statements was sufficient. These included salary deposits and direct debits for household expenses. A lender may ask for all bank accounts but if your salary and household expenses are shown on your main current account, they may not ask. This could vary by lender.

I would encourage anyone matched betting to have a separate account anyway. I have a dedicated matched betting account because it is easier to keep track of profits away from my current account. Also, there is also the feeling of out of sight, out of mind; it’s not as easy to raid profits when they aren’t in your current account!


Transfer your money in advance

An alternative to stopping all together would be to transfer as much as you want to bet with to your bookmaker accounts a few months before your mortgage application. Then just bet with what you have there. This way, no further deposits will show on your bank account statements which you provide for evidence, but you can still bet. The profits would just accumulate within your bookmaker accounts.

Use a Skrill account

Alternatively, use a Skrill account to transfer money to your bookmaker accounts. Using Skrill means your transactions won’t appear on your bank account (as long as you don’t use your debit card!). Beware though that some bookmaker offers aren’t applicable if you use Skrill; always check the terms and conditions of each offer.

Buying your home

Deposit

You can quickly earn a steady income with matched betting. The more time you put in, the more you can potentially earn. For many, a deposit for a house purchase is the biggest financial ‘target’ to achieve. Which is why matched betting is such a great side hustle to help you reach that goal more quickly.

When it comes to paying your deposit, you will likely to be asked to declare the source of the funds e.g. savings, inheritance, gift etc. This is for money laundering purposes and as long as you can identify the source of your ‘savings’ i.e., there should be no issue.

Declaring matched betting income

The income that you make from matched betting is tax-free. This is great from a tax perspective. But it also has a flip side; the income you make from matched betting will not count towards your income when applying for a mortgage. You can’t have your cake and eat it!

You will need to make sure that your income from other sources e.g. salary, property rental, investment income, is sufficient for the level of borrowing you want. Just a little something to bear in mind!


Credit checks

When you apply for a mortgage, the lender will search your credit score to check your suitability. It’s important to have a good credit rating if you want your mortgage approved.

Online gambling affect mortgage application online

When you apply for a bookmaker account, they will check you are who you say you are. If your initial application doesn’t pass their first round checks, you will have to send a digital copy of your passport and bank card to their verification team. To verify your identity, they perform what is known as a ‘soft’ credit check on you. However, these soft searches do not affect your credit rating; they will not influence whether a lender approves your mortgage or not. Hoorah!

Heads&Heads matched betting service

So if you are looking to buy a house and still want to do some matched betting, you can if you plan in advance.

I’m always looking for great products which is how I have stumbled upon the matched betting service Heads&Heads. Their fabulous Dashboard hosts a range of tools and information that give you complete control over your matched betting experience:

  • Tracking Table. Collating all your matched betting data (for example; Bookmaker, Betting exchange, Stake, odds and profit, to name a few) in one, manageable location.
  • Matched betting calculator. This easy to use calculator is imbedded into the Tracking table and does all the complex matched betting maths for you.
  • Displays key data. What is my total profit? Who is my preferred bookmaker? All answered instantly.

In addition to your personalised user Dashboard, for a monthly membership fee of £14.99 (or £150 per year), you get access to:

Online Gambling Affect Mortgage Application Fee

  • 100+ bookmaker offers and tutorials (complete with video guides)
  • Daily offer updates
  • Unlimited access to oddsmatching software
  • Matched betting calculators
  • The Heads&Heads forum
  • LiveChat customer service – and with less subscribers than some of the larger players in this space, this means an even more responsive and dedicated customer service team!
Online gambling affect mortgage application status

Online Gambling Affect Mortgage Application Online

Why not give them a go!

Online Gambling Affect Mortgage Application Form

This is a collaborative post.