While having the odd bet on your football team to win at the weekend sounds like a bit of harmless fun, it could actually scupper your chances of getting a mortgage.
Lenders have always been cautious when it comes to approving mortgages, but some brokers have noticed that even the odd gambling transaction is now viewed as a red flag.
Typically, borrowers will be judged on a range of factors, including their income, age, credit utilisation and payment history, when they submit a mortgage application.
The exact requirements to be approved for a mortgage can vary depending on the lender.
Joe Childes, mortgage adviser at Right Choice Mortgages, told the Money blog he had recently seen banks declining applications based on gambling transactions on clients’ bank statements, even if it’s just the odd flutter.
“The tolerance for gambling transactions seems to vary from lender to lender,” he said.
“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.
“Gambling transactions can be questioned by the underwriter, or in some cases we have seen straight declines with no grounds for appeal.”
On LinkedIn, he raised one case where his clients had filed a joint application, had no forms of credit in the background and were asking for a mortgage of less than 50% loan-to-value ratio, but were declined twice.
The pair were never in their overdraft and had £5,000 in their current account.
“These are football bets only, and just present on one statement out of the past three. Affordability for the level of transactions seen is not a concern,” he said.
He questioned whether banks would make the same decision for those who excessively drink or smoke, or those who go to their local bookies and use cash to place bets.
“If the client can afford the spending, is it right to dictate how they use…
