Gambling and Mortgages

It’s a widely held misconception that being a gambler will always prevent you from getting a mortgage. But it is true to say that gambling can sometimes affect the outcome of your application.

In this article, we’ll look at how gambling can affect getting a mortgage, what you can do to shore up your application and why using a broker is your best route to securing a mortgage whether you gamble occasionally or make a living from it.

Does gambling affect a mortgage application?

Simply being a gambler will not prevent you from getting a mortgage, but it may prompt lenders to delve deeper into your finances than they otherwise might.

Even professional gamblers can obtain a mortgage, although there are only a small number of providers who operate in this niche.

However, if your application is touch and go, your betting habits might be looked on less favourably.

When assessing your application, lenders will look at affordability and eligibility:

What do mortgage lenders class as gambling?

It’s easy to think of gambling on only in terms of sports betting or casinos, but mortgage providers have a wider scope than that.

When they examine your bank statements, any payments to bookmakers, bingo sites or any kind of lottery will be considered gambling. Once again, a direct debit for Lotto or a charity lottery is unlikely to ring alarm bells, but it may be included as a regular outgoing when assessing affordability.

But large or regular payments to online or offline gambling companies of any description will raise questions.

How much gambling is too much?

This depends on each lenders’ risk model. Some will have no problem with how regularly you place a bet or play bingo, provided you are doing it within your means.

Others will be put off if your outgoings show regular payments to gambling sites as they will be concerned about potential difficulties you may get into over the term of your loan.

To find out how most lenders will view the amount you bet compared with your monthly income, insert your figures into the calculator below.

What to do if you have had a mortgage declined due to gambling

If you’ve had a mortgage application declined due to gambling, it’s important you resist the temptation to immediately apply elsewhere. Each time you submit an application, the lender will carry out a hard credit check that will show up on your credit file.

Multiple applications are another red flag for other providers, so it’s vital you take steps to strengthen your next application, and that you identify the best lender to approach before going any further.

Step by step guide

Which lenders should gamblers avoid?

There are more UK lenders who won’t accept applications that include recurring gambling payments, than there are who will. If you’re a professional gambler, you really need an expert broker, not just to find the right lender, but to act as an advocate on your behalf.

For recreational gamblers, it’s more a case of knowing each lenders’ attitude to risk. Some providers have no policy on this, others refer any applicant with a history of gambling to their underwriters, and yet more will reject applications outright.

For example, you can get a mortgage with Nationwide if you have recurring gambling payments provided your finances are ‘well managed’, although there is no specific criteria in their documentation that defines what ‘well managed’ means. They will not lend to raise capital to pay off gambling debts. Both Barclays and Natwest have a similar policy when it comes to mortgages for people who gamble regularly.

Other major lenders, including Halifax, HSBC, Santander and Virgin Money have stricter rules when it comes to regular payments to gambling sites. That’s not to say that they won’t accept these types of applications, just that you need to know how best to package your application with lenders like these.

Knowing which lenders to avoid relies on assessing your situation against each provider’s criteria. That’s why it’s best to speak to a whole of market broker before applying.

Can you get a mortgage based on gambling winnings?

It’s rare but not impossible to use gambling winnings as your income when taking out a mortgage. While your choice of lenders will be severely limited, those who accept applications will treat it in a similar way as a self-employed mortgage would be assessed. The problem is that you probably won’t have SA302 forms as gambling winnings are tax-free, and it is harder to predict your future income with any great certainty.

If you have a significant deposit that brings down your loan to value, and a clean credit history, your application is more likely to be successful.

Likewise, several years of consistent profits will give lenders more confidence in your ability to keep up the repayments.

Using gambling winnings as a deposit

It might be that you have a stable income and eligibility is not a problem, but that your deposit (or a fair chunk of it) comes from a big gambling win.

In theory, this shouldn’t pose a problem, but lenders are required to explore the origins of your deposit. Provided you have a receipt for your winnings and can show the money going into your account, you should be fine.

However, if you won the money in cash and can’t evidence where it came from, lenders are unlikely to accept it as legitimate income.

Other tips to strengthen your application

Other actions that might strengthen your application and help you get a mortgage include:

• Saving. Not only will this increase your deposit, but it will also show lenders that gambling is not preventing you from putting money aside. Remember, lots of lenders assess applications where gambling is a concern on a case-by-case basis, so this could be crucial to the outcome.
• Getting a guarantor mortgage. This could give lenders more confidence and get your application over the line. You can find out more about this with our guide to guarantor mortgages.
• Use a separate bank account for your gambling. But use this as a way of compartmentalising your betting funds rather than hiding them. Most bank accounts will show up on your credit file anyway. And if you’re gambling large amounts that you fear lenders may be concerned about, you’re going to need to explain where that income goes.

Get matched with a broker experienced in dealing with gambling income

There is no reason that having the occasional flutter should prevent you from getting a mortgage. But you do need to be aware that there are lenders out there who take a dim view of any gambling activity.

That’s why it’s always best to speak to a broker who can match you with the right lender according to your personal and financial circumstances.

Our broker matching service goes one step further and pairs you up with a broker who is an expert in helping people in your situation. Whether you are a pro gambler or recreational punter, call today on 0808 189 0463 or enquire online to get matched with your ideal broker and make sure your gambling doesn’t have a negative impact on the outcome of your mortgage application.