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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.

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“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.

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Asda-owner TDR snaps up former SPAC merger target CorpAcq

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Asda-owner TDR snaps up former SPAC merger target CorpAcq

The private equity owner of Asda has struck a deal to buy a controlling stake in a group which specialises in backing British SMEs.

Sky News has learnt that TDR Capital has agreed to acquire a majority interest in CorpAcq, less than six months after the so-called ‘corporate compounder’ aborted a deal to list in the US.

City sources said this weekend that CorpAcq, which makes roughly £125m in annual profit, was being valued at well over £1bn on an enterprise value basis in the deal with TDR.

Founded in 2006, CorpAcq – which sponsors Sale FC Rugby’s stadium, near its Altrincham base – has amassed a portfolio of more than 40 companies.

It specialises in buy-and-build strategies, with a focus on companies operating in the industrial products and services sectors.

The company’s acquisition blueprint enables SME founders to retain management control while gaining a long-term investment partner offering operational support to those businesses.

CorpAcq’s founder is Simon Orange, brother of the former Take That member Jason and joint-owner of the Sale Sharks.

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In 2023, a special purpose acquisition company (SPAC) founded by Michael Klein, one of Wall Street’s leading financiers, announced a $1.5bn plan to take CorpAcq public.

The merger was called off in August last year, with Mr Klein’s vehicle Churchill Capital VII citing difficult IPO market conditions.

Banking sources said that TDR and CorpAcq had entered discussions well after the SPAC deal was abandoned.

The deal, which could be announced within weeks, is the latest to be struck by TDR, which also counts the pubs giant Stonegate and David Lloyd Leisure among its portfolio of investments.

A spokesman for TDR declined to comment.

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Poundland owner drafts in advisers amid discounter crisis

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Poundland owner drafts in advisers amid discounter crisis

The owner of Poundland, one of Britain’s biggest discount retailers, has drafted in City advisers to explore radical options for arresting the growing crisis at the chain.

Sky News has learnt that Pepco Group, which has owned Poundland since 2016, has hired consultants from AlixPartners to address a sales slump which has raised questions over its future ownership.

City sources said this weekend that the crisis would prompt Pepco to explore more fundamental for Poundland, including a formal restructuring process that could prompt significant store closures, or even an attempt to sell the business.

AlixPartners is understood to have been formally engaged last week, with options including a company voluntary arrangement or restructuring plan said to have been floated by a range of advisers on a highly preliminary basis.

Sources close to the group said no decisions had been taken, and that the immediate focus was on improving Poundland’s cash performance and reviving the chain’s customer proposition.

A sale process was not under way, they added.

Poundland trades from 825 stores across the UK, competing with the likes of Home Bargains, B&M and Poundstretcher, as well as Britain’s major supermarket chains.

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Last year, the British discounter recorded roughly €2bn of sales.

It employs roughly 18,000 people.

Earlier this week, Pepco Group, the Warsaw-listed retail giant which also trades as Pepco and Dealz in Europe, said Poundland had seen a like-for-like sales slump of 7.3% during the Christmas trading period.

In its trading statement, Pepco said that Poundland had suffered “a more difficult sales environment and consumer backdrop in the UK, alongside margin pressure and an increasingly higher operating cost environment”.

“We expect that the toughest comparative quarter for Poundland is now behind us – the same quarter last year represented a period prior to the changes made within our clothing and GM [general merchandise] ranges – and therefore, we expect the negative sales performance for Poundland to moderate as we move through the year.”

It added that Poundland would not increase the size of its store portfolio on a net basis during the course of this year.

“We are continuing a comprehensive assessment of Poundland to recover trading and get the business back to its core strengths, including undertaking a thorough assessment of all costs across the business, as well as evaluating its overall competitive positioning,” it added.

The appointment of AlixPartners came several weeks after Stephan Borchert, the Pepco Group chief executive, said he would consider “every strategic option” for reviving Poundland’s performance.

He is expected to set out formal plans for the future of Poundland, along with the rest of the group, at a capital markets day in Poland on 6 March.

Among the measures the company has already taken to halt the chain’s declining performance have been to increase the range of FMCG and general merchandise products sold at its traditional £1 price-point.

Poundland’s crisis contrasts with the health of the rest of the group, with Pepco and Dealz both showing strong sales growth.

A spokesman for Pepco Group, which has a market capitalisation equivalent to about £1.7bn, declined to comment further on the appointment of advisers

AlixPartners also declined to comment.

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FTSE 100 closes at record high

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FTSE 100 closes at record high

The UK’s benchmark stock index has reached another record high.

The FTSE 100 index of most valuable companies on the London Stock Exchange closed at 8,505.69, breaking the record set last May.

It had already broken its intraday high at 8532.58 on Friday afternoon, meaning it reached a high not seen before during trading hours.

Money blog: Major boost for mortgage holders

The weakened pound has boosted many of the 100 companies forming the top-flight index.

Why is this happening?

Most are not based in the UK, so a less valuable pound means their sterling-priced shares are cheaper to buy for people using other currencies, typically US dollars.

This makes the shares better value, prompting more to be bought. This greater demand has brought up the prices and the FTSE 100.

The pound has been hovering below $1.22 for much of Friday. It’s steadily fallen from being worth $1.34 in late September.

Also spurring the new record are market expectations for more interest rate cuts in 2025, something which would make borrowing cheaper and likely kickstart spending.

What is the FTSE 100?

The index is made up of many mining and international oil and gas companies, as well as household name UK banks and supermarkets.

Familiar to a UK audience are lenders such as Barclays, Natwest, HSBC and Lloyds and supermarket chains Tesco, Marks & Spencer and Sainsbury’s.

Other well-known names include Rolls-Royce, Unilever, easyJet, BT Group and Next.

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FTSE stands for Financial Times Stock Exchange.

If a company’s share price drops significantly it can slip outside of the FTSE 100 and into the larger and more UK-based FTSE 250 index.

The inverse works for the FTSE 250 companies, the 101st to 250th most valuable firms on the London Stock Exchange. If their share price rises significantly they could move into the FTSE 100.

A good close for markets

It’s a good end of the week for markets, entirely reversing the rise in borrowing costs that plagued Chancellor Rachel Reeves for the past ten days.

Fears of long-lasting high borrowing costs drove speculation she would have to cut spending to meet self-imposed fiscal rules to balance the budget and bring down debt by 2030.

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They Treasury tries to calm market nerves late last week

Long-term government borrowing had reached a high not seen since 1998 while the benchmark 10-year cost of government borrowing, as measured by 10-year gilt yields, was at levels last seen around the 2008 financial crisis.

The gilt yield is effectively the interest rate investors demand to lend money to the UK government.

Only the pound has yet to recover the losses incurred during the market turbulence. Without that dropped price, however, the FTSE 100 record may not have happened.

Also acting to reduce sterling value is the chance of more interest rates. Currencies tend to weaken when interest rates are cut.

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