Can Online Gambling Affect Your Mortgage Application?
You may be surprised to learn that, yes, it can. An individual looking to borrow a large chunk of money is assessed on the risk they pose to the lender. This is the overall risk of the money not being paid back. The mortgage provider needs to be 100% sure that you are a good candidate for them to loan money to.
Every aspect of your finances will be checked during the application process. And this will include a mortgage advisor delving into your regular spending habits.
If you participate in the lottery online once a month or spend €20 a week on online bingo with your debit card, this shouldn’t pose a problem as long as you can show that you can afford this and are playing within your means.
A lender’s appetite for risk varies, and whilst some might not be interested in gambling transactions, others will question them. Mortgage applications are dealt with on a case-by-case basis, and each applicant has a different financial status. If you have recurrent betting on your bank account, your application could be passed to an underwriter. Who will then decide on the risk you pose to the lender?
There are many factors taken into account during a home loan application. Affordability is key for a lender before they even begin to do KYC and credit checks. You’ll be asked to submit your bank statements for at least the past three months.
Be mindful that some borrowers can request at least a year’s worth of these. These statements will be examined, and your affordability will be determined. This is to see if you can afford the monthly payments and that you will be able to pay back the total loan over the requested period.
The mortgage advisor will consider regular spending, other borrowing repayments and the amount you need to live off comfortably over the month. This could be an issue if you have multiple unaffordable gambling payments debiting your bank account or debt on your American Express.
If you’re a professional gambler with no other fixed income, there’s a reduced chance of getting a mortgage.
A lender needs to see that you are trustworthy and have a steady stream of money coming into your bank from a reputable source. You can have an account stuffed with ongoing winnings, but this won’t make any difference to a lender’s final decision.
- Don’t panic: This doesn’t mean you’ll never get a home loan, so don’t lose heart. Not all mortgage lenders are the same, and each has different risk criteria. Some are more lenient when it comes to online Gambling, so it could be that you’ll be accepted elsewhere.
- Don’t apply for another mortgage immediately: It might be tempting to rush to another lender and begin the process again – but don’t. Each time you apply for a mortgage, you’ll be credit checked, which leaves an imprint on your credit file. Too many credit checks in a short time can impact your overall score. It’s better to wait at least three months before approaching a new lender.
- Get a broker on board: Let the experts do their thing and find a broker who will do the leg work for you. These experienced individuals will fully know a lender’s stance on online gambling transactions. And will be able to match you up with a more suitable provider.
Kevin Flynn is a lean start-up business consultant, PowerMBA, and Senior Financial Markets Editor at Investors Prism. He lives in Leominster, Massachusetts, with his wife…More info on Kevin Flynn