Gambling Transaction Mortgage Advice in Newcastle
When a lender reviews your bank statements, they are looking for various indicators. Their main objective is to assess your financial responsibility and your ability to maintain timely mortgage payments.
Recently, many applicants especially first time buyer in Newcastle have been asking a common question: ‘Do gambling transactions negatively affect my bank statements?
Mortgage Questions to Consider
What has it got to do with the lender whether I gamble or not?
While engaging in licensed gambling is not illegal, there’s no need to worry if you’ve occasionally placed bets on events like the Grand National or used online betting platforms. For many, gambling is simply a common pastime, much like any other hobby.
However, it’s essential to heed the message often seen in gambling advertising: ‘please gamble responsibly.’ This is a crucial consideration when applying for a mortgage. Lenders are not in the business of dictating how you lead your life, spend your money, or passing judgment on the ethics of gambling. Nevertheless, they do have a responsibility, as underscored by mortgage regulations, to make lending decisions prudently.
If lenders must demonstrate to regulators that they are making sound lending choices, it’s not unreasonable for them to expect borrowers to approach their personal finances in a similar responsible manner. Put yourself in their shoes: if you were lending your own money, would you lend it to someone with a serious gambling addiction?
Is it still possible to get a mortgage if I’ve got gambling transactions on my recent bank statements?
Having occasional gambling transactions on your bank statements is not inherently a barrier to mortgage approval, as gambling itself is legal. However, lenders will assess the reasonableness and responsibility of these transactions. They will pay close attention to their frequency, size in relation to your income, and their impact on your account balance.
If your gambling transactions are infrequent and involve small amounts that have minimal impact on your overall account balance, they are unlikely to raise concerns. However, if you engage in daily gambling or frequently overdraft your account, lenders may view this as irresponsible behavior, which could lead to a mortgage application denied.
Is there anything else lenders wouldn’t want to see on my bank statements?
Lenders look at your bank statements to gauge your financial management, aiming to determine your level of responsibility or the presence of financial red flags. For instance, having an overdraft facility and occasionally using it isn’t necessarily a concern, but consistently surpassing the overdraft limit is less favorable. Hence, lenders pay close attention to excessive overdraft fees and bounced direct debits, as these may indicate poor account management.
Additional items lenders watch for include credit transactions from payday loan companies, undisclosed loan repayments (when you claimed no existing loans on your application but regular loan payments appear), and noticeable missed payments.
Moreover, they assess the duration of time your account remains in overdraft throughout a typical month. If you’re only using it briefly after payday and spend the rest of the month in overdraft, lenders may question the sustainability of the mortgage.
What can I do to improve things?
Keep in mind the importance foresight. In most cases, a bank may request your three most recent bank statements, which encompass your salary deposits and recurring bill payments.
If you anticipate applying for a mortgage in the near future, it’s wise to steer clear of the potential issues mentioned above. Consider taking a temporary break from gambling and focus on optimising the presentation of your bank account to enhance your prospects.
Mortgage Broker in Newcastle
Whether you’re a first time buyer in Newcastle, feeling a bit overwhelmed by the process, or you have a complex case requiring a specialist mortgage advisor in Newcastle, our team is here to provide expert guidance. We’ll navigate you through the entire mortgage process, assist with your application, and set you on the right path.
Our team is available 7 days a week, ready to address your mortgage queries. We’re eager to assist you on your mortgage journey. Schedule a free call with one of our mortgage advisors in Newcastle today.
Date Last Edited: October 19, 2023
