The major banks and building societies are starting to lend more to borrowers with good credit and a hefty deposit. Some banks will examine everything going in and out of your bank account, and those will typically dish out the best interest rates. Other lenders might not be as stringent.
The important thing is to get a good mortgage broker. They can do all the relevant checks first before recommending you to a bank. The broker will also assess your gambling for any pitfalls, however.
PROFESSIONAL GAMBLING:
If you’re a professional gambler, lenders will not look favourably on you if you are making your living from slots and sportsbetting. With no tax on UK gambling winnings, gamblers will effectively have no taxable income – and it doesn’t matter how well you’ve hit that jackpot on Mega Moolah.
Lenders don’t see gambling as a sustainable source of income (and even ‘skill’ games like poker are considered gambling). Some unsecure lenders will be more lenient on your information, but the interest rates could be higher.
One tip that professional gamblers use is to have a secondary source of income, like a part-time PAYE job with a contract. Gambling winnings can go towards a deposit while the contract can be used to apply for the mortgage itself.
CASUAL GAMBLING:
The effect of an overdraft on your Credit Score. Dipping into your overdraft now and again – basically using it as intended – shouldn’t have a significant impact on your Credit Rating. In fact, showing that you can successfully manage and repay a short-term form of credit may even be a positive factor in the minds of future lenders. Fair Isaac does not provide 'credit repair' services or advice or assistance regarding 'rebuilding' or 'improving' your credit record, credit history or credit rating. FTC's website on credit. PRIVACY NOTICE: When you visit this website we collect your browsing activities on our site and use that information to analyze and research. But the potential to get in over your head while gambling is real. If you have a high credit limit, you could find yourself paying back one night of gambling for a long time. We suggest you resist.
Even “hobby” gamblers can fall foul of the lenders. One mortgage broker told us:
“We have had a client turned down by a lender for spending a just a few hundred pounds a month or so on an online bingo website. ”
The key is how regular the gambling is. If you deposit £200-300 a month or more regularly into a casino online, the banks will flag it up.
Many people place bets online on a regular basis, and while the thrill of a win is something we all seek, could that have an impact on your credit rating? The answer is far from straightforward, but there are two key points that you need to know about the subject. The first is that betting will not have any impact on your credit rating, it is accepted that many people place bets for enjoyment. However, the second factor is key, and that is that if you show signs of being an irresponsible gambler, even if you don’t consider yourself to be one, then this could have an effect on your credit rating.
With millions of people gambling up and down the country every week, it is no surprise to learn that gambling itself cannot harm your credit score. This is a past time that is enjoyed by many people, and often the way in which many of us relax and further enjoy the sporting events that we are planning to watch.
Responsible gambling is allowed and whether that is in a shop with cash, or online on one of the many new online betting sites, you are allowed to have a flutter. However, it is important not to show any signs of being a problem gambler if you want to avoid being questioned on it.
People looking at your credit score will see deposits made to your bookmaker if you do that directly from your bank account. Using an e-wallet payment like Paypal, Neteller or Skrill can hide this if you are concerned and you don’t want that showing.
Something you do need to show if you are funding your betting through your bank is that gambling to you is a luxury and not a priority. This means it is no good to see deposits made to bookmakers when you are struggling for money in your account to pay the bills. Worse still, depositing using a credit card would also set alarm bells ringing, as you are betting on credit and showing them that, you should only bet with funds you have, and funds that are spare after you have paid off all your bills and other commitments.
If you are looking to keep clean and ensure you don’t harm your credit rating then following the steps below will generally keep you where you need to be.