We know that applying for a mortgage, whether it’s for your first property or your forever home, can feel somewhat intimidating. You may wonder if mortgage credit checks are invasive, as they examine all aspects of your spending history. And if you’ve spent money on gambling, you might be worried about how this could affect future mortgage applications.
We’re here to offer some insight so that you can move forward with property searches feeling confident in your ability to secure a mortgage. Our team of mortgage brokers in Preston provides impartial advice and non-judgmental support to help you take the next step in your property-buying journey.
So let’s take a look at the big question together: Does gambling affect mortgage applications? We’ll also explore the best ways to explore your mortgage application if gambling has been a part of your financial history.
Do Mortgage Lenders Look At Gambling?
It’s important to remember that mortgage lenders are looking to see how much of a financial risk they may need to take if lending you money. As gambling is indeed a game of risk, it’s no surprise that lenders do tend to look closely at gambling transactions.
Of course, there are so many forms of betting these days, from online bingo to paid prize draws – so what counts as “gambling” in relation to a mortgage? Lenders typically count the following activities:
- Bingo
- Playing the lottery
- Scratchcards
- Casino games (in-person or online)
- Slot machines
- Betting through a bookmaker (for example, betting on sports games)
- Betting at events such as horse racing
Can You Get A Mortgage With Gambling Transactions?
But don’t worry – if your recent transactions involve gambling payments, it doesn’t automatically mean you’ll be refused a mortgage.
Mortgage applications take a whole host of factors into account to assess whether you are a suitable candidate for borrowing.
Their main goal is to feel confident that you’ll be able to make your monthly mortgage repayments. It’s important to note that different lenders have different criteria, so even if one provider is uncertain about your eligibility, another may happily lend you the amount you need.
Depending on the lender, the following points will usually be considered:
- How much money you have gambled with in total
- The type of gambling – those with larger transactions may be seen as higher risk
- The frequency of your betting transactions – for example, a one-off scratchcard won’t usually be an issue
How Much Gambling Is Too Much For A Mortgage?
There’s no universal figure that is considered ‘too much’. We understand this can be frustrating, but it can also work to your advantage if you are worried about gambling transactions on your financial statements.
Mortgage finance checks are quite nuanced. They focus on your affordability, examining how your income compares to your expenses, whether you’re in debt, and your spending patterns.
With this in mind, gambling is generally considered an issue if you are losing large amounts of money and your betting is affecting your credit scores. However, lenders may also consider the following signs as red flags:
- Very regular gambling transactions
- Large bets, particularly if they are a high percentage of your income
- Gambling on a credit card
- An upward trend in transactions – either the volume or the amount you’re betting is increasing each time
In short, if your gambling transactions are not overly frequent, use your own money, and haven’t led to any debt, then it’s unlikely to impact your mortgage application.
How Long Does Gambling Affect Your Mortgage Application?
So, how far back do mortgage lenders look for gambling transactions? Financial assessments typically look at your statements from the past 3-6 months. So if you previously had a volume of betting transactions on your account but have reduced these in the past few months, it’s less likely to influence a lender’s decision.
What To Do If You’re Worried About How Gambling Will Affect Your Mortgage Application
If you have any concerns about how gambling transactions might affect your mortgage application, the first thing is to remember not to panic. Even if a lender has already denied your application, it doesn’t mean you won’t be able to get one.
The best way to improve your chances of getting approved for a mortgage next time is to:
- Clear your debts
- Stop or reduce your gambling transactions
- Boost your credit score
We recommend getting in touch with an experienced mortgage advisor who can help assess your current situation and see what the next best steps are. When you contact our team at Key Mortgage Advice, you’ll always be treated with care and respect. We know that every individual has unique circumstances, so we’ll take the time to understand yours.
Support And Guidance From Key Mortgage Advice
We’ll guide you every step of the way and help bridge the gap between you and the best mortgage lenders available. Please don’t hesitate to get in touch. Email enquiries@keymortgageadvice.co.uk or book an appointment online for a free consultation.
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