Gambling Transactions – A Big Red Flag for Mortgages
Getting a mortgage can be a long, complicated process. Saving up the necessary funds can take a while. Then, there’s the application process and other hoops to jump through. Now, mortgages are even harder for some to get, thanks to banks turning down applications from those with gambling transactions.
Players should be careful if they want a mortgage © satheeshsankaran, Pixabay
People With Gambling Transactions May Not Get a Mortgage
It’s recently come to light that some banks are denying people mortgages because of gambling transactions on their accounts. This is something that Joe Childes, a mortgage advisor at Right Choice Mortgages, noticed.
He told Sky that he’s seen a number of banks turn down mortgage applications because of gambling transactions on clients’ statements. These don’t just involve large sums of money, as smaller transactions can be flagged by banks too.
The following is a quote from Joe based on what he’s seen in recent times:
We have seen cases declined where clients have separate accounts for placing bets, but even just those who bet on the football at the weekend.” Mr Childes added gambling transactions could be questioned by an underwriter or lead to straight declines made with no grounds for appeal in some cases.– Joe Childes, Gambling Transactions Stopping Mortgages, Birmingham Mail
According to Mr Childes, what banks are most concerned about is habitual spending on gambling. If someone regularly spends money on gambling, it could be an issue or lead to one someday.
This could be the case even if an applicant could easily afford to gamble. What it boils down to is that some banks are starting to look unfavourably upon any gambling transactions, no matter who they’re from.
Mr Childes has also started seeing this. He’s noticed that some people who gamble regularly but can easily afford to do so have had their mortgage applications turned down.
This is despite the fact that they didn’t have any financial problems. They could also keep up with their mortgage payments while still having money left over for gambling or other activities.
When you apply for a mortgage, you have to supply some important pieces of information on your application. These include your age, annual income and credit score. Lenders consider these when deciding whether to give you a mortgage.
Of course, each lender has a different list of specific requirements, so one lender might deny your application while another could accept it. A lot of them are taking into account gambling activity alongside their usual criteria.
Advice for Future Applicants
There’s currently no definitive answer to the question of how much gambling activity is needed for mortgage applications to be turned down. This is because banks consider applications on a case-by-case basis.
Mr Childes believes the number of transactions, not necessarily the size of them, is key. For now at least, it seems that if you’re applying for a mortgage in the near future, you should keep gambling transactions to a minimum.
