1. Does Gambling Affect Mortgage Application Uk Login
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3. Does Gambling Affect Mortgage Application Uk Online
4. Does Gambling Affect Mortgage Uk

When you’re making a property purchase in the UK, the mortgage application process can be nerve-wracking. Lenders are scrutinising your finances and considering many variables, including “what-ifs,” when making an assessment. In this intense environment, how can a simple overdraft affect your application’s chances?

Does gambling affect your mortgage application? A borrower that gambles presents an increased risk to a lender. Think of it from their perspective; They’re lending out potentially thousands of pounds, so they want to feel sure that they’ll get it back. There is no clear-cut answer for whether or not a mortgage lender will refuse to lend you money based upon your gambling deposits. However, if they can see regular payments into online gambling operator accounts, these may present a cause for concern. Why lenders have to look into your spending habits.

Type of Overdraft

The short answer is that it depends. In general, an overdraft isn’t an automatic write-off for an applicant. But depending on the type of overdraft and frequency, it can leave a definite stain on your approval chances.

You should first know that there are two different kinds of overdrafts: authorized and unauthorized.

• Authorized means that the bank knew about and agreed to it.
• Unauthorized drafts were not approved by the bank.

This comes into play when considering if it counts against your application. Lenders are looking for reliability when it comes to who they give money to. They want to know the person on the other end will be able and willing to pay them back. They take into account details large and small.

Overdrafts

What does your overdraft say about you? While having an overdraft on your account might not be the most impactful activity a lender looks at, trends like frequent unauthorized overdrafts can put you in the unreliable category. It can suggest to them that you are on a tight budget and might not be able to take on a mortgage.

The other issue with overdrafts is that, if you use it often, you are probably getting charged interest and fees from the bank. The lender adds this to how much you spend every month to determine how much is left over to afford your mortgage.

Even unused overdrafts can affect your overall assessment. If lenders see that you are granted a big overdraft from your bank, they may take into consideration the fact that you could use it in the future. Depending on the state of your finances, they might determine you won’t be able to make your mortgage payments.

Of course, overdrafts are not a death knell for your chances. Circumstances in your life could explain the overdrafts, like a new career. If a lender can explain the overdrafts, it is more likely they will approve. This all gets incorporated into their considerations.

What If You Were Declined?

You finally got the word from your lender, and they told you exactly what you were dreading: you have been declined. Where do you go from here?

First, you need to find out what happened. You can find out from your lender not only whether your overdrafts were a key factor, but what about them was a red flag. Ask lots of questions. You can use this information going forward when you want to apply again.

Your next option could be to speak to an adviser or mortgage broker. This person has a knowledge of which lenders you can go to based on your unique situation. This increases your chances of having a successful experience with your next application.

Applying for your mortgage is a stressful experience with so many unknown variables. The results are in the hands of someone whose determination is based on individual assessment. With an overdraft, you don’t have to worry about it being the end of your application; but even if it is, there are steps you can take moving forward.

Despite what you may have heard, mortgage advisors don’t spend their spare time sitting in a lair somewhere, stroking their beard while devising reasons why you can’t have a mortgage.

In fact there’s a lot of myths out there about what lenders are looking for. Here’s five things that won’t actually ruin your mortgage application.

1. Occasionally gambling or spending your money on stuff you don’t need

There’s a lot of information out there that suggests that any gambling is an absolute no-go, but spending the odd tenner on the races or on what will happen in the Christmas episode of Eastenders isn’t a big deal.

Gambling is an issue only if it’s frequent, if you place bets you can’t afford, or if your mortgage advisor thinks it might impact your mortgage repayments.

The same goes for spending money on ‘silly’ things. We all do it, so go out and have a good time! Just make sure to follow your budget and to do it all in moderation.

2. Applying for a mortgage on your own

Let’s get it out of the way: yes, it is possible to get a mortgage on your todd. However, there are certain considerations, the big one being that your mortgage amount is relative to your income. If you’re in a partnership or are married and want a mortgage, your income is combined.

Does Gambling Affect Mortgage Application Uk Login

The deposit is also a lot easier to save up if you’ve got a lovely other half to help out. That said, your mortgage application won’t be rejected because you’re applying on your own.

3. You don’t know what your credit rating is

If you’re a fan of spending but you’re not too good at keeping track of your repayments (sure the money comes out of your account at the end of the month – no bother!), a bad credit rating can impact your application.

Hop over to the Irish Credit Bureau and you can apply for a credit report online for only €6. If your credit rating is on the negative side, make sure to tell your mortgage advisor as soon as possible so you’ll have no financial skeletons waiting to jump out of your closet.

While not knowing won’t cause issues, a bad credit rating will have to be taken into account – but we reckon that’s fair enough!

4. Having a messy paper trail

When you go into your mortgage meeting, the ideal scenario is that you’ll have your documents organised and in tip-top shape. You’ll be able to show your mortgage advisor how much you’ve saved each month, how you spend your money, and how good you’ll be at meeting your mortgage repayments.

While that certainly helps things along, a messy paper trail isn’t the end of the world. Incase your paperwork has disappeared to the same place as all your matching socks, these are the documents you’ll need to bring to your mortgage meeting:

PAYE employees
• Photo ID
• Proof of address
• P60 (or 3 months consecutive payslips)
• Certificate of income
• Bank statements for the last 6 months

Self-employed
• Photo ID
• Proof of address
• 3 years audited/trading accounts
• Confirmation of your tax position
• 3 years Revenue Notice of Assessment
• 6 months business current account statements

5. Being in negative equity

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Negative equity happens when the value of your house is less than the amount you owe on your mortgage; if you sold your house, you wouldn’t be able to fully clear your mortgage.

A lot of Next Time Buyers think that being in negative equity means they won’t be able to get another mortgage, but that’s not true.

With Negative Equity Home Movers, you can transfer the outstanding balance to a new loan on your next house. As with most second houses, you can decide whether to trade up or down (finances pending).

Thinking of applying for a mortgage?

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Whether you’re a first time or next time buyer, EBS has options to suit you. If you want to buy a house or you’re considering trading up or down, try our mortgage calculators or book a 30 minute mortgage meeting now!

EBS d.a.c. is regulated by the Central Bank of Ireland.

The content of this blog is expressed in broad terms and is limited to general information purposes only. Readers should always seek professional advice to address issues arising in specific contexts and not seek to rely on the information in this blog which does not constitute any form of advice or recommendation by EBS d.a.c.

Does Gambling Affect Mortgage Uk

EBS d.a.c. neither accepts nor assumes any responsibility in relation to the contents of this blog and excludes all warranties, undertakings and representations (either express or implied) to the fullest extent permitted under applicable law.