01789201914 enquiries@capc.uk.com

Does Gambling affect my mortgage application?

Does gambling affect your mortgage application?

 Applying for a mortgage is a process that will involve heavy scrutiny of your financial history and current income and expenditure. A house mortgage is probably the biggest loan you will ever take out, so banks will do the necessary analysis to check whether they trust you to repay the loan.


One question that often arises is whether gambling affects mortgage applications and the simple answer is – yes it does. If a bank is weighing up whether they think you will be able to repay the mortgage loan, they will want to know if there are any concerns that could potentially stop you from doing so.


Evidence of gambling, even a small transaction could impact your ability to get your mortgage approved. Whilst gambling small amounts every now and then when you are not taking out credit to pay for it should not be enough to cause your application to be declined. However, if there are other financial issues that get flagged, or you are gambling large sums of money then this will definitely bring your gambling to the attention of underwriters assessing whether to approve your application.


    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. then this will be a red flag for lenders as a potential indicator of you not being able to meet future payments.


    Regulations brought about in 2014 and 2017 changed the way that affordability is assessed and looking at bank transactions within your statements is a part of that. If your account statements reveal that you have been regularly placing bets with betting companies or going to casinos then this will be highlighted as a risk.


    Tips to increase your chances of mortgage approval

     Before you apply for a mortgage, be aware that your last 3-6 months of bank transactions will be analysed and that your spending behaviour in that period should be as favourable as you can get it to. In other words, try not to use your overdraft and try to avoid making any gambling transactions. If you fancy the odd flutter, it is better to use cash so that there are no transactions showing on your bank statements.


    However, the best approach is to completely stop gambling. Not only will it help your bank statement assessment, it will also help you to save more money for your house deposit. If you have any debt then the more you can clear, the better. Lenders will look at your debt-to-income ratio to see how much you can realistically afford to be paying off with all other expenditures taken in to account.


    Checking your credit history is a really good idea, whether you have any concerns about your financial history or not, there may be outstanding issues that you were not aware of that you will benefit from clearing. It may be that there is some negative credit history that will soon fall out of the range that counts towards your credit checks. For example, if you had late payments seven years ago, they are removed from your credit file after the seven years, so you would be better to wait until any negative issues have cleared from your account before applying for a mortgage.


    One of the most important factors to stop gambling affecting your mortgage application is to ensure that you are not borrowing money to then gamble with it. That will show lenders that you are taking on debt in order to gamble and that will flag you as a big risk to them.


    Contact our expert advisers now

    Call free from landline or mobile

    01789 201 914

    The increasing focus on spending habits and gambling

     Gambling is becoming a growing concern with the ease of online betting and the regular television adverts and promotions that tempt people into gambling. Getting a mortgage approved is much more difficult now than years ago when 100% mortgages were commonplace. Lenders have become stricter with their lending criteria and their analysis into spending is much more detailed.

    The best way to ensure that your mortgage application isn’t refused due to gambling is obviously to not gamble at all. Gambling is a problem that can soon escalate, landing you in financial trouble that could take years to resolve, leaving you unable to get a mortgage application approved.


    If you are looking for some advice on whether you will be able to get a mortgage approved and if so, the best type of mortgage to apply for in your circumstances then speaking to a mortgage broker will help you to decide your next course of action. Having mortgage applications declined will add more searches onto your credit file, so you are better to get an idea of where you stand financially before you apply for one.


    Getting help for gambling addiction

     If gambling could prevent you from getting a mortgage application, then it is definitely time to get help. The key question you should ask yourself is whether you bet more than you can afford to lose. Also, do you chase losses or feel you need to keep increasing the amounts that you bet in order to get the same feeling of excitement? If the answer to any of those is yes, then you should be seeking help to deal with gambling addiction. As well as putting you into financial difficulties, gambling problems can ruin relationships and have a big impact on your mental health.


    Submit a Comment

    Your email address will not be published. Required fields are marked *

    Contact our expert advisers now

    Call free from landline or mobile


    Not the right time for a call? Email us and we can arrange a good time to discuss your needs


    Mortgage Blogs

    The Art Of Decluttering

    We all know that feeling when your house becomes so full that you feel like you can’t see the wood for the trees. If this sounds familiar to you, then it’s time to sit up and finally de-clutter your house, once and for all! Over the years, your belongings build up....

    Remortgaging To Raise Capital

    There may come a time when you want to use the money that is tied up in your home for something else, such as for home improvements. Going through this process is known as releasing equity.

    The ins and outs of overpayments

    Once you’ve settled into your mortgage and have gotten used to your new outgoings, you may find that you have a bit more disposable cash than you first thought. So the next question is: what should you do with the money?

    Remortgaging FAQs

    Whether you should remortgage or not will depend on your individual circumstances and needs. If you have found a lower interest rate and it’s financially the better option then it might be more suitable for you to remortgage. You also might want to remortgage for the following reasons:

    How to create your dream self-build home

    Is it your ultimate dream to one day design and live in a home that you’ve created yourself? But perhaps the thought of going into the unknown is putting you off making it happen? In this article, we’re taking a closer look at the journey of a self-build project…

    10 documents every landlord should have to hand

    As a landlord, no matter whether you have one property or a large portfolio, it’s important to keep on top of all the paperwork associated with owning the buy to lets. Here are ten key pieces of documentation you should have up to date and to hand:

    Advantages of buying a new build

    Just like everyone has their own style when it comes to fashion, it’s the same when it comes to houses. Some people prefer period houses that have character and unique features, whereas others might prefer a new build property with a clean, modern look and feel that you can make your own.

    How to renovate a rental property to reduce further maintenance costs

    Buying, renovating and potentially furnishing a property is an expensive process and it’s natural to want to keep costs as low as possible, particularly if you are trying to make a limited amount of capital stretch far. However, as legions of landlords before you have learned…

    How to downsize – Top tips for empty nesters

    Have you been rattling around your big, old house for quite some time now? If so, downsizing might be the right thing to do. A driving force for many to downsize is an empty nest. If the kids have grown up and moved on, having to look after a big, empty house can become a burden.

    Help to Buy for Homemovers

    Many of you may already be aware of the Help to Buy scheme that was introduced back in 2013 that aims to help those struggling to save money get onto the property ladder, or to move home. However, it’s a myth that all Help to Buy schemes are for first-time buyers only.

    How does remortgaging work?

    You may well have heard of remortgaging but never fully understood what it means. In layman’s terms, remortgaging is when you look to move from one mortgage deal to another, either sticking with the same lender or moving to a new one. A mortgage is likely to be your largest financial commitment…

    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 and loan amount. The fee is up to 1.5%, but a typical fee is 0.67% of the amount borrowed.

    ©2019 |CAPC is a trading name of Christopher Allen Private Clients Limited which is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the financial conduct authority.

    Christopher Allen Private Clients Limited. Registered Office: 7 Arrow Court, Adams Way, Alcester, Warwickshire, B49 6PU. Registered in England Number:08820469

    Ready To Discuss Your Mortgage Options?

    Speak to a member of the team now

    Monday – Friday


    We use cookies on this website to give you the best experience we can. To find out how to turn off cookies, have a look at our privacy & cookies policy