How the odd bet on football could cost you a mortgage
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.
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.”
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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.
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
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.
Donald Trump’s victory was secured on an unequivocal promise to stretched American households that he would “end inflation”, but markets and economists are anticipating his second term will do the opposite.
A combination of corporate tax cuts, government borrowing, lower migration and swingeing tariffs on overseas imports are all expected to heat up the American economy and stoke price rises.
Bond yields on 10-year US Treasuries, effectively the price of borrowing for the American government, were up by 3.6% overnight, rising more than 15 basis points to above 4.4% as European markets opened.
That signals investors believe that borrowing will rise, and the Federal Reserve will be forced to slow rate cuts in order to tackle inflation.
US election latest: Trump beats Kamala Harris in race to White House
Money latest: The market winners and losers after Trump’s win
A clearer picture will emerge on Thursday when Federal Reserve chairman Jay Powell, who Mr Trump said will not be reappointed, announces the next move on rates.
Markets still expected a 0.25 percentage point cut (a similar move to that anticipated from the Bank of England earlier in the day) but Mr Powell’s comments will be scrutinised for signals of what Trump 2.0 means for the prospect of further cuts.
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Trump wins: Demographics and key issues
But higher prices for consumers are not necessarily bad news for corporate America, with the dollar surging against sterling and the euro as swing states fell to Mr Trump, and Wall Street futures trading indicating a rally when they reopen with him confirmed as president-elect.
Shares in US banks were boosted with J.P. Morgan, Goldman Sachs and Morgan Stanley all up more than 6% in pre-market trading, along with Tesla, boosted by more than 13% as markets anticipate a dividend for Elon Musk’s campaign-trail support.
Keep up with all the latest news from the UK and around the world by following Sky News
Defence stocks were higher too and not just in the US – BAE Systems and Rolls Royce were both up – reflecting likely pressure on America’s NATO allies to make good on their commitments to increase spending.
Bitcoin was also positive in anticipation of a more benign regulatory environment from a president who used the campaign platform to launch his own cryptocurrency.
By contrast renewable holdings, the target of much of Joe Biden’s economic stimulus, were in negative territory, with wind and solar priorities likely to be replaced by a pledge to “drill baby, drill”.
Of most concern to America’s trading partners and allies will be Mr Trump’s promise to erect barriers to free trade.
The man who said tariffs “is the most beautiful word in the world” has pledged a 60% levy on Chinese imports and 10% on those from elsewhere, a deeply protectionist move that could trigger a trade war with China and the EU.
These can only increase prices in the US, with importers paying the levies at the point of entry, and other trading blocs likely to respond in kind.
Read more on Trump’s victory:
How worried should we be about Trump’s second presidency?
Dollar surges amid Trump victory
The EU has already imposed its own 35% tariff on Chinese EVs to the dismay of the continent’s carmakers the measure is intended to protect.
While these tensions play out, post-Brexit Britain, a relatively small player outside the major trading blocs, is likely to be a spectator.
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.
Keep up with all the latest news from the UK and around the world by following Sky News
“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.”
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