Home Loans and Online Gambling – What Is the Relationship?

When you read that title, perhaps your first thought is – the two shouldn’t have a relationship! Home loans and online gambling are two completely different topics. One is a loan for a home, the other is a game you play online for money, whether it’s using an online casino, the online lottery, placing a bet online or even trying your hand at online scratch cards. However, we’re not talking about home loans for redecorating or remodelling – we’re talking about your mortgage. When it comes to applying for a mortgage, if you have a history of gambling addiction, you could affect your chances of being approved, and there are approximately 1.4 million people in the UK who have gambling problems. So, while home loans and online gambling shouldn’t mix – unfortunately, mortgages – a form of the home loan – and gambling do.

I Gamble and Want a Mortgage!

So what happens if you gamble and you want a mortgage?

Well, firstly, gambling now and then definitely won’t affect your application. Most people in the UK gamble, whether it’s playing the National Lottery, purchasing scratch cards online or at the petrol station or placing a bet on the derby (amongst others!). All of the aforementioned are completely normal pastimes, as is spending some time playing on online gambling sites. As long as you aren’t spending excessive amounts of money, there shouldn’t be an issue. 

However, if you are spending exorbitant amounts a month on gambling activities, then you could find obtaining a mortgage trickier. For one, you’ll have to show your bank statements to the mortgage company as part of your application. If you have list upon list of online gambling websites next to your transactions, bookmakers, or bingo halls, this will flag up to your mortgage company, and they may decline your application.

So Occasional Flutters Don’t Matter?

No – the occasional flutter on the horses or visiting a casino for a night out once in a while shouldn’t have any bearing on your mortgage application whatsoever. But some lenders simply don’t like gambling at all. So while it shouldn’t make a difference – if you are planning on applying for a mortgage and you regularly play Roulette or Blackjack, perhaps you play Bingo using online casinos – then the best thing you can do is refrain for three to six months so your bank statements don’t show any gambling activity, especially if you’re unsure of the outcome of your application. 

Having said that, plenty of “professional” gamblers get mortgages – but there aren’t many lenders who will deal with these types of home loans.

Mortgage lenders will look at your income and expenditure, and they want to know that you’re up-to-date with any outstanding loans, credit cards or other forms of debt. The bottom line is, they want to feel comfortable that you can afford your monthly repayments, and if you’re a regular gambler with an income that’s very tight in comparison to your outgoings, you might lose out on that mortgage deal you wanted.

Pay Down Credit Cards

As a gambler looking for a mortgage, we’d also suggest that you pay down any credit cards as much as you can. As well as gambling, your potential mortgage lender will be looking at any debt and making sure you can manage to repay that as well as a mortgage.

What Is Gambling According to Mortgage Lenders?

There are so many types of gambling:

• Sports betting;

• Scratch cards;

• Lottery;

• Online and offline casinos;

• Bingo sites and bingo halls.

Your mortgage lender will look at all of these – although a direct debit for a weekly Lotto is unlikely to cause concern but it still comes under the term “regular outgoings” and will be taken into consideration as part of your overall outgoings.

Is There Too Much Gambling That Would Make the Difference?

The short answer is no – there isn’t, as long as you can afford what you spend on gambling, but if your overall expenditure outweighs what you’re bringing in, then you will be refused. Some lenders won’t want to lend to you if you have large gambling outgoings – even if you can afford it because they won’t know whether or not you could become addicted to gambling.

What Happens if You’re Declined a Mortgage Because of Gambling?

Don’t quickly reapply, as you’ll just be declined again. You also shouldn’t start applying to other lenders as you will likely be declined again, and that goes down on your credit score. The best thing to do is stop your applications for a few months. Re-evaluate your outgoings and income, cut back on your gambling habit and pay down any credit cards or debt you might have. 

Wait a good 6 months before applying again and if you can, use a trusted financial advisor to help get you on the right track to obtain a successful mortgage application. If you do think you have a gambling addiction, contact the NHS because they have gambling clinics to help you, or you can try Gamcare as well, as they provide support for gambling addicts. You can also check out our responsible gambling section for tips on how to gamble safely.