Connect with us

Published

on

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.

More from Business

“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.

Pic: iStock
Image:
Pic: iStock

“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 their hard-earned money?” he asked.

What bets could cause an issue?

Mr Childes said it was “habitual spending” on betting that appeared to spark most concern with lenders, even if clients could easily afford how much they were putting down.

“For some clients, betting on the football, for example, can be a hobby and the amount spent is not excessive in relation to their income,” he said.

“However, we have seen applications from these clients declined even where the clients are not under financial pressure and can maintain the level of spending.”

This story originally ran in the award-winning Sky News Money blog – click here to read more

People should be aware that underwriters will review their bank statements when they apply for a mortgage, and gambling transactions are likely to be questioned.

“If the number of transactions seen through your account are considered to be excessive, this could lead to your mortgage application being declined,” Mr Childes said.

Lenders haven’t been able to clarify what their “tolerance level” for gambling is, he added, with many saying it is assessed on a case-by-case basis.

The major lenders’ gambling policies

We asked all the major lenders to explain their gambling policies to the Money team – here’s what they said:

Santander

The high-street bank doesn’t have any specific gambling related policies for mortgage customers.

Instead, it undertakes affordability assessments when considering new mortgage applications.

This includes an assessment of a customer’s bank statements, which considers all their outgoings to make sure monthly repayments are affordable.

A photo of a mobile phone device with bank apps including Santander. Pic: iStock

Barclays

Barclays said it did not have any set rules when it comes to gambling: “We ensure all mortgages are affordable before we offer them, including testing at higher interest rates.”

Nationwide

As a “responsible lender”, Nationwide said it aimed to ensure customers can afford their mortgage payments now and in the future.

It said each application was assessed on a case-by-case basis, taking a range of factors into account to determine how much can be borrowed.

We also contacted HSBC, Natwest and Lloyds – but they didn’t get back to us.

Pic: PA
Image:
Pic: PA

What should you do?

If you think your gambling habits might be causing you a problem, there are steps you can take.

Matt Zarb-Cousin, co-founder of gambling blocking software Gamban, said people should start to look at their behaviour if they are chasing losses, preoccupied with gambling and thinking about their next bet, and losing interest in other activities.

“These behaviours will often lead to such significant loss-chasing in a gambling session that it causes significant financial harm that can impact you for weeks or even months,” he said.

“Being able to spot the signs before it reaches that point, and quitting, can prevent this from occurring in the first place.”

If you want to quit online gambling, talkbanstop.com offers free tools and support.

Banks also offer the option to block gambling transactions, which provides another layer of friction that can help prevent relapse, Mr Zarb-Cousin said.

“Gambling transactions can affect mortgage applications, but the primary concern of lenders is you’re not getting into debt to fund gambling,” he said.

He pointed out that lenders often look at bank statements from the past three to six months, so even quitting for that amount of time before applying could put you in a better position.

Continue Reading

Business

Post Office campaigner Sir Alan Bates says he is yet to receive reply to letter to PM

Published

on

By

Post Office campaigner Sir Alan Bates says he is yet to receive reply to letter to PM

Post Office campaigner Sir Alan Bates is yet to receive a reply from Sir Keir Starmer, despite writing to him over a month ago.

Sir Alan said he had written to the prime minister to remind him the “clock is still ticking” on a financial redress deadline for victims.

In his letter, he demanded a March 2025 deadline for compensation for sub-postmaster victims of the Horizon scandal.

Sir Alan confirmed to Sky News he was yet to hear back from the prime minister.

Follow Sky News on WhatsApp
Follow Sky News on WhatsApp

Keep up with all the latest news from the UK and around the world by following Sky News

Tap here

“It was over a month ago,” he said.

“I sent him a reminder yesterday. I told him the clock is still ticking and it’s now five months from the March deadline, which I’m told is still achievable by other professionals.

“So let’s get on with it, that’s all we want. Get on with it.”

This breaking news story is being updated and more details will be published shortly.

Please refresh the page for the fullest version.

You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow @SkyNews on X or subscribe to our YouTube channel to keep up with the latest news.

Continue Reading

Business

Vodafone and Three merger could get green light, says UK’s competition watchdog

Published

on

By

Vodafone and Three merger could get green light, says UK's competition watchdog

A £15bn merger between two of the UK’s biggest mobile networks could get the green light – if they stick to their commitments to invest in the country’s infrastructure, the competition watchdog has said.

The Competition and Markets Authority (CMA) said the merger of Vodafone and Three had “the potential to be pro-competitive for the UK mobile sector”.

Announced last year, the proposed £15bn merger would bring 27 million customers together under a single provider.

The watchdog previously warned that tens of millions of mobile phone users could end up paying more if the merger went ahead.

However, the two groups recently set out plans to protect consumer pricing and boost network investment.

The CMA has now laid out a list of “remedies” required for the deal to go-ahead.

They include the networks committing to freezing certain tariffs and data plans for at least three years to protect customers from short-term price rises in the early years of the network plan.

Please use Chrome browser for a more accessible video player

From September: ‘A transformation for the UK’

Stuart McIntosh, chair of the inquiry group leading the investigation, said on Tuesday: “We believe this deal has the potential to be pro-competitive for the UK mobile sector if our concerns are addressed.

“Our provisional view is that binding commitments combined with short-term protections for consumers and wholesale providers would address our concerns while preserving the benefits of this merger.

“A legally binding network commitment would boost competition in the longer term and the additional measures would protect consumers and wholesale customers while the network upgrades are being rolled out.”

Today’s announcement is provisional, with a final decision due before 7 December. The inquiry group is inviting feedback on today’s announcement by 5pm on 12 November.

Read more:
The lesser-known tricks estate agents use to secure sales
Bosses rail at business secretary over ‘avalanche of costs’

The CMA also published a list of potential solutions – which it called remedies – to issues it identified with the merger.

If the networks want the merger to go ahead, the watchdog requires Vodafone and Three to:

• Deliver a joint network plan to set out network upgrades and improvements over eight years;

• Commit to keeping certain existing tariff costs and data plans for at least three years to protect customers from price hikes;

• Commit to pre-agreed prices and contract terms so Mobile Virtual Network Operators (MVNOs) – mobile providers that do not own the networks they operate on – can obtain competitive wholesale deals.

Vodafone and Three are two of the biggest mobile firms in the UK, and their networks support a number of MVNOs including Asda Mobile, Lebara, Voxi, and Smarty.

Responding to the watchdog’s announcement, a spokesperson for Vodafone on behalf of the merger said: “The merger will be a catalyst for positive change.

“It will bring significant benefits to businesses and consumers throughout the UK, and it will bring advanced 5G to every school and hospital across the country.

“The merger is also closely aligned with the government’s mission to drive growth and to encourage more private investment in the UK.”

Follow Sky News on WhatsApp
Follow Sky News on WhatsApp

Keep up with all the latest news from the UK and around the world by following Sky News

Tap here

Earlier this year, Three’s chief executive hit out at the UK’s “abysmal” 5G speeds and availability as he urged regulators to approve the company’s merger with Vodafone.

Robert Finnegan noted his firm’s “cash flows have been negative since 2020 and our costs have almost doubled in five years, meaning investment in [the] network is unsustainable”.

“UK mobile networks rank an abysmal 22nd out of 25 in Europe on 5G speeds and availability, with the dysfunctional structure of the market denying us the ability to invest sustainably to fix this situation,” he added.

Continue Reading

Business

Bosses rail at business secretary over ‘avalanche of costs’

Published

on

By

Bosses rail at business secretary over 'avalanche of costs'

Business leaders expressed frustration with ministers on Monday amid a growing budget backlash that bosses said would trigger an “avalanche of costs” and leave them with no choice but to slash investment and increase prices.

Sky News has learnt that bosses of large retail and hospitality companies and trade associations told Jonathan Reynolds, the business secretary, that last week’s budget risked damaging consumer confidence and exacerbating challenges facing the UK economy.

Among the dozens of companies represented on the call are said to have been Burger King UK, Fuller Smith & Turner, Greene King, Kingfisher and the supermarket chain Morrisons.

Mr Reynolds is said to have acknowledged that Rachel Reeves‘s inaugural fiscal statement had “asked a lot” of British business, with James Murray, the financial secretary to the Treasury, understood to have described it as “a once-in-a-generation budget”, according to several people briefed on the call.

Business and Trade Secretary Jonathan Reynolds arrives in Downing Street.
Pic: PA
Image:
Jonathan Reynolds. Pic: PA

One insider said that Nick Mackenzie, the chief executive of Greene King, had highlighted that the increase in employers’ national insurance (NI) contributions would cause “a £20m shock” to the company, while Fullers is understood to have warned that it would be forced to halve annual investment from £60m to £30m as a result of increased cost pressures.

Rami Baitieh, the Morrisons chief executive, told Mr Reynolds that the budget had exacerbated “an avalanche of costs” for businesses next year, and asked what the government could do to mitigate them.

Sources added that the CBI, the employers’ group, said its impact would be “severe”, while the British Beer & Pub Association added that there was now a disincentive to invest and flagged “a tsunami” of higher costs.

Please use Chrome browser for a more accessible video player

How will the budget affect businesses?

The range of comments on the call with ministers underlines the scale of discontent in the private sector about Labour’s first budget for nearly 15 years.

Only a small number of interventions during the discussion are said to have been in support of measures announced last week, with the Federation of Small Businesses understood to have praised the doubling of the employment allowance, which would see many of the smallest employers having their NI bills cut by £2,000.

The Department for Business and Trade has been contacted for comment, while none of the companies contacted by Sky News would comment.

Continue Reading

Trending