Does Gambling or Betting Affect a Mortgage Application?

Mortgage lenders have strict eligibility criteria and will be wary of applications where even a sporadic history of betting or other forms of gambling is detected, especially if you’ve lost a significant amount of money through it.

Casual gambling activity is less likely to negatively impact your mortgage application compared to relying on gambling winnings as part or all of your declared income. However, there are still at least 3 lendersUpdated 06:00 today powered by the OMA®Engine (Click to view rates) who can consider gambling-derived income.

Typically, you’ll be treated similarly to a self-employed borrower. You’ll need to provide evidence of consistent earnings over a sustained period, with lenders primarily focusing on your average income trend.

Here are some of the questions lenders will want answers to, depending on whether you’re a casual or professional gambler:

Casual gambler

• How often do you gamble?
• What percentage of your monthly income is spent on gambling?
• Do you use credit or overdrafts for gambling?

Professional gambler

• How long have you been a professional gambler?
• What have been your monthly earnings for the last 12 months?
• Have you declared it to HMRC (even though gambling income is tax-free)?
• Do you have accounts from a qualified accountant?
• Do you have any other income from other sources?

A select number of mortgage lenders may be willing to overlook gambling depending on the following…

• How high their appetite for risk is
• How often you’re gambling
• How much money you spend on it
• The amount of winnings/losses you make
• How recent the gambling transactions are
• The type of gambling you take part in
• Whether you have bad credit as well

So, it is possible, potentially, to get a mortgage if gambling appears on your bank statements, and it’s even possible to declare gambling winnings on a mortgage application as income with a small minority of mortgage lenders.

The answer to this varies from lender to lender, depending on their risk appetite. If the gambling transactions are recurrent, some mortgage providers will factor them in during the affordability assessment and decide based on the amount you spend on betting relative to your income and other fixed financial commitments.

While some lenders are happy to overlook frequent gambling if it’s well-managed and within the borrower’s means, others assess applications with recurrent betting on a case-by-case basis. This often means they will request extra underwriter scrutiny to establish the full risk of lending to somebody who gambles regularly.

• You’ve already had a mortgage application declined
• You have gambling transactions on any of your last 3 months of bank statements
• You gamble for more than £200 a month, or you spend more than 10% of your monthly income on gambling
• You regularly gamble on more than 2 platforms (e.g., you have multiple betting accounts)

If any of the above apply, you must speak to an expert broker before submitting an application.

If you feel your gambling habit is purely recreational and doesn’t go outside the boundaries outlined above, then finding the right lender is critical. This is where a broker comes in – a mortgage advisor specialising in mortgages for gamblers can ensure you find the ideal lender the first time.

Mortgage lenders in the UK treat the following as forms of gambling…

• Casino games and slot machines (including online)
• Online betting sites
• Betting through a bookmaker
• Lotteries
• Bingo
• Scratchcards

Most mortgage lenders will take the same stance on any form of legal gambling if it’s frequent or accounts for a lot of your disposable income, but how frequent and how much is too much would usually be determined on a case-by-case basis.

Mortgage lenders are known to decline applications where the borrower has a history of gambling. This is usually because they believe the transactions are too frequent, the losses too heavy, or the amount spent on gambling is too high.

If you’ve been declined for a mortgage because of gambling, here are the steps to take…

• Remember, it’s not the end of the road. While it’s understandable to be disappointed and frustrated, keep in mind that other mortgage lenders will consider your application, so it may be possible to get approved elsewhere.
• Resist the temptation to re-apply straight away: Many people make this mistake. They rush straight to another lender in search of a different outcome, but another rejection could seriously impact your credit report. Professional advice is essential if you’ve been declined once already.
• Let us match you with the right broker: We can handpick a mortgage advisor who specialises in arranging finance for people with a history of gambling. They know which lenders will overlook gambling transactions and can help you get your mortgage back on track.

It’s possible to get a mortgage based on gambling income. Still, you’ll need to fit well within the parameters of general eligibility criteria, such as having a clean credit record and a large deposit, since most mortgage lenders would treat an application under these circumstances as high risk. Gambling income is often volatile, so it’s easy to see where lender concerns stem from.

Those with a successful track record of earning money regularly and an upward trend of betting income are much more likely to be deemed a safe bet by mortgage lenders and have this income considered for mortgage purposes.

Here are the criteria lenders use to assess mortgage applications for professional gamblers: 

• Income stability/betting behaviour/habits: Consistent income. Most lenders like to see a steady profit from gambling if it’s your primary source of income.
• Track record: A long-term track record of making a full-time wage from gambling will boost your chance of getting a mortgage based on your winnings.
• Type of gambling: Types of gambling involving some form of skill – such as Blackjack, Baccarat or horse racing (if you’re an owner/trainer or regular backer) – are often looked on more favourably than luck-based gambling, such as the lottery.
• Gambling income ratio: This refers to the size of your typical betting stake relative to the amount of money you have. For example, if you regularly place £1,000 bets but have hundreds of thousands in your bank account, this is unlikely to cause concern.

In addition to the criteria lenders have for your gambling income, you will also need to meet their general criteria for creditworthiness. The stronger your application, the more likely the lender is to overlook any potential risk posed by how you make your money.