Mortgage Declined Due To Gambling

• Mortgage Declined Due To Gambling Winnings
• Mortgage Declined Due To Gambling Rules
• Mortgage Declined Due To Gambling Money

Generally speaking, gambling and mortgages do not mix well. Taking out a mortgage means that a bank or building society trusts that you’re able to pay the money back. But if they see that you’re an active gambler, then this may go against your application.

However, 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 might put a small bet on every now and then.

When will gambling affect a mortgage application?

If you’re a professional gambler wanting to use your winnings as evidence that you can afford to take out a mortgage, then you might come up against a few hurdles, as this is considered far more risky than someone who has a job and gambles occasionally on the side. That’s not to say that it isn’t impossible though. Those 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.

Hate to be the bearer of bad news but more than likely they will decline your mortgage. Most if not all will decline with even a sniff of gambling on statements unfortunately. I had to use the Halifax as they at they dont ask for bank statements. Could be an idea for you unless their policies have changed. Though mortgage lending was up a big 38% from 2011, there will still thousands of declined mortgage applications. In fact, the top mortgage lender in the United States, Wells Fargo, denied 84,687 of the 399,911 home purchase applications it received (21.2% rejection rate), including those that were pre-approved, according to a Marketwatch analysis. Gambling is an issue only if it’s frequent, if you place bets you can’t afford, or if your mortgage advisor thinks it might impact your mortgage repayments. The same goes for spending money on ‘silly’ things. We all do it, so go out and have a good time! Just make sure to. With mortgage rates near all-time lows, the demand for refinancing remains high despite the COVID-19 pandemic. Borrowers are attempting to take advantage of the low rates, while lenders grapple with the surge in refinance volumes and the backlog of mortgage loan applications.

Whilst you may argue that professional gambling is no different to getting a mortgage when self-employed, gambling is still deemed as a riskier business than self-employment, especially if there’s no trace of regular savings but a build-up of debt instead.

Mortgage Declined Due To Gambling Winnings

Ultimately, 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 being declined.

When won’t gambling affect a mortgage application?

When lenders carry out their affordability checks, they look at your bank statements from the previous 3-6 months. Therefore, any gambling on your bank statements during this period will be seen by your potential lender. However, the lender is not going to judge you on what you chose to spend your money on. Their primary concern is that you aren’t getting into debt in order to fund the gambling, so if you’re betting using your own money, and you aren’t in debt, then this shouldn’t affect your mortgage application.

Similarly, if you only put the odd bet on here and there, then you don’t need to worry about gambling affecting your mortgage application. Just be mindful that if your finances begin to suffer because of it, then this may affect things.

How to get mortgage approved

If you do gamble and you’re worried about getting a mortgage, you could try the following things to help improve your situation and get yourself mortgage ready:

Mortgage Declined Due To Gambling Rules

Clear your debts – Clearing off any debt you have shows that you’re responsible when it comes to your finances.

Regular savings – Again, it’s all about responsible lending, so if you can show that you have a savings account that you pay into regularly, the lender will see you as a low-risk borrower.

Good credit history– Having a good credit history improves your chances of getting a mortgage, so you should work to improve your credit score.

Stop gambling – The most obvious, but this can only happen if you want to stop gambling.

Get the right mortgage advice

Speaking to a mortgage broker can help you get the right advice that you need in order to fulfil your dream of getting on the property ladder. They’ll be able to address any worries or concerns that you may have about your spending habits.

Mortgage Declined Due To Gambling Money

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 been refused a mortgage due to gambling, then now might be the right time to turn things around and seek advice. Visit the GambleAware website for help with a gambling addiction https://about.gambleaware.org/.

For further information call: Sunjay Chauhan 07525 129333

Email: [email protected]

or visit: Sunjay Chauhan Website

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 1.5% but a typical fee is 0.3% of the amount borrowed.

Having been in the mortgage industry for over 10 years I have a wealth of knowledge in all things related to mortgages. I pride myself on providing the highest level of service to all my clients which has led to me winning a number of awards.

Bank statements provide lenders an insight into the lives of prospective borrowers, but some activities could result in an application unexpectedly being turned down.

Providers are looking for any clues that customers may struggle to keep up with repayments in the future.

Here are the bank statement activities that brokers say act as a red flag to lenders, and at the worst, mean applications are rejected.

1) Gambling habits
Bank statements detailing payments to bookies can instantly stop an application in its tracks, brokers warned – even when the borrower is an otherwise perfect candidate.

Malcolm Davidson, managing director at mortgage broker UK Moneyman, told us of a case in which one of his clients had a perfect credit history, but a prospective lender identified a gambling habit on bank statements.

Davidson said: “It was really the type of customer that any lender would normally lend to. They gambled with their own money and there was no overdraft.”

After requesting more information, the lender eventually declined the case. Davidson said the client had effectively been punished for their choice of vice.

Rachel Lummis from Xpress mortgages agreed gambling transactions cause problems.

She said: “Many of us like a flutter on the grand national – that won’t affect you – but if you have daily amounts going out to companies, such as Bet Fair or Ladbrokes then that can cause an issue.”

2) Being overdrawn
Dipping into overdrafts could suggest a prospective borrower struggles to manage their money effectively and this will set alarm bells ringing for lenders.

Lummis said: “A rather common mistake is when a bank offers you that service of letting you go overdrawn, however as long as you make payment by the afternoon then it is fine.

“That is rather generous of them and you are playing by the rules but on your statement, it will show those several transactions as over your overdraft.

“The fact that it’s sorted by the end of the day and accepted by your bank doesn’t matter.

“Other lenders will see this as going over your overdraft limit and if you do this frequently that’s enough for your mortgage to be declined.”

3) Payday loans
Nick Morrey, product technical manager at John Charcol, said payday loans will raise problems with any mainstream lender.

He added: “It implies you cannot keep to your monthly net income so a new, large mortgage commitment could be a problem in the future.”

Bounced direct debits, where the account holder has not had enough funds in their account at the end of the month is another stumbling block, Davidson advised.

4) Unexplained cash deposits
Regular payments from family and friends could be viewed as a financial commitment and affect overall affordability, Morrey warned.

Borrowers will also need to have a reasonable explanation for any unusual payments or larger payments.

One-off cash payments can raise fears among lenders over money laundering.

And those who gift part of deposits to borrowers, will often need to provide proof of wealth, Davidson said.

5) Bank statement jokes
Joke references to friends or family can cause problems, according to brokers.

Lummis said: “A bit of light-hearted banter should not be played out on your bank statements.

“A lender doesn’t want to see a friend paying you back for that meal you had last week, with a crude entry that says ‘payment for drugs’ or ‘sex last night’.”

6) Suggestive card payments
Davidson told of a case where the lender spotted a one-off payment to Mamas & Papas.

The lender then went on to ask if the borrower was pregnant, which could impact their affordability further down the line.

One way for borrowers to avoid bank statements falling foul of lender underwriting is to shift the majority of spending to a credit card in the run-up to submitting an application, which is then paid off in full each month.

Alternatively switching some payments, such as gambling, to cash could also help ease applications through.