Gambling and mortgages can be considered an oil and water mix; it just doesn’t combine well. When you take out a mortgage, it basically implies that a building society or a bank trusts that you are capable of paying the money back and promptly. This means that if a bank or building society finds out that you gamble actively, it may affect your application for a mortgage.
Nevertheless, there is a huge difference between individuals who gamble with large sums of money frequently and those who just gamble with little sums once in a while.
Can Gambling Have an Impact On Mortgage Application?
Sometimes, gambling may impact your mortgage application. For example, if you gamble at VeryWell Casino and you choose to use your winnings as proof that you can afford to pay back a mortgage, there might be some issues. The reason why you have to deal with some hurdles is that gambling is a very risky venture. Even riskier is lending money to a player who doesn’t have a job on the side that supports his finances.
Nevertheless, there is a small chance that a professional gambler may get a loan. The only clause is that loan companies will only give out a small amount of money in most cases and increase the interest rate.
Some people may proceed to argue that getting a mortgage as a professional gambler is not exactly different from doing so when you are self-employed. However, the fact here remains that gambling is considered a riskier venture than self-employment. This is so mostly when there isn’t a trace of frequent savings but a debt accumulation.
Eventually, it becomes clear that being a professional gambler reduces your chance of getting your mortgage application approved. This is because your activity is considered a risk.
On the flip side, there may be a chance for gamblers to get a mortgage. When potential lenders carry out an affordability check, they go through a person’s bank statements from the previous quarter to a half year. Thus, any gambling activity at online casinos that reflects on your bank statement will be noticed by the potential lender. Nevertheless, that doesn’t mean you will be judged based on your spending choices.
The lender looks out for whether you are gambling with money that you have and are not borrowing to fund your gambling activities. Thus if you are not in debt and are gambling using the money you can afford, things may go on smoothly with your mortgage application.
Also, if you are one of those folks who only put the odd bet on once in a while, then there is no cause for alarm. Just ensure that your finances do not end up suffering for it, as that may affect things.
What To Do If You Were Declined?
If you have formerly applied for a mortgage and were declined, there are a few things you can do to improve your chances next time. Below are the common options available to you:
Stop Gambling
Of all the advice you may get regarding improving your chances after being declined, this is the most straight-forward. To stop gambling, you must make conscious efforts to get help, especially if you have a gambling problem.
For individuals living in the Uk, there is the possibility of getting on the self-exclusion scheme called GamStop. All you have to do is supply your details to GamStop and decide for how long you want to self-exclude from gambling. You can also discuss with professionals who can help you with your gambling if you live outside the Uk.
Clear Your Debts
One of the best ways to show a potential lender that you are responsible for your finances is to clear any debts that you may have pending. You can also take the initiative to save more and stop borrowing if you can.
Improve Your Credit Rating
When you are able to stop borrowing and clear out your debts, you are on the right track to improving your credit rating. This is because when you build a good credit history for yourself by paying off loans, lenders will consider you reliable and be willing to borrow you.
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