If you’re planning to apply for a mortgage, you might be surprised to learn that your gambling habits could be considered during the application process. Mortgage lenders evaluate the level of risk you pose as a borrower, similar to how you’d be cautious about lending money to someone who might struggle to repay it. Understanding how gambling could affect your application is important, so you can take the necessary steps to improve your chances of approval.
The mortgage application process
It’s helpful to familiarise yourself with the mortgage application process, particularly if you’re concerned about your gambling activities impacting your credit. When applying for a mortgage, your lender will perform an affordability assessment to ensure you can comfortably meet the monthly repayments.
During this assessment, mortgage lenders will evaluate various factors, including:
- Income: Verification of employment, income from all sources, annual salary, and any additional earnings, such as rental income or dividends.
- Outgoings: Regular expenses like existing mortgage payments, rent, insurance, utility bills, household costs, and any existing loans.
- Credit checks: A credit reference check will be conducted. Before applying, consider reviewing your credit score through agencies like Experian, Equifax, or TransUnion.
Your gambling habits will also be reviewed as part of this assessment.
When can gambling affect a mortgage application?
Some lenders have strict criteria and may be wary of applicants who spend significant amounts on gambling. However, others may be more lenient, depending on factors such as:
- The total amount of money spent on gambling
- The frequency of gambling activities
- The types of gambling involved
Ultimately, the lender’s concern is whether your gambling behaviour could jeopardise your ability to make timely mortgage payments, potentially putting their investment at risk.
When is gambling unlikely to affect a mortgage application?
During affordability checks, lenders typically review your bank statements from the previous 3 to 6 months. If your gambling is within your means and not causing financial strain or debt, it’s less likely to impact your application. Occasional, controlled betting with your own money is generally not a red flag. However, if gambling is straining your finances, it could pose a problem.
Sustainability of gambling
Lenders will also assess whether your gambling is sustainable. Are you staying within a budget that doesn’t affect your ability to cover essential expenses? Does gambling negatively impact your standard of living? If your gambling is budgeted and manageable, with no adverse effect on your finances, lenders may view it as reasonable. However, consistent and problematic gambling could raise concerns during the affordability assessment.
Speak to a mortgage adviser
Our experienced mortgage advisers can help you navigate the application process and find solutions tailored to your specific situation. Reach out to us today for personalised guidance.
Get help for gambling addiction
If you think you have any issues with your gambling, visit the GambleAware website for help.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount will depend upon your circumstances.
The fee is up to 1% but a typical fee is £598.
