Can Gambling Stop You Getting A Mortgage

• You can get a mortgage once you are retired. To find out the specific requirements, I interviewed Patrick Gavin, Branch Manager & VP of Mortgage Lending at Guaranteed Rate, the 10th largest privately held mortgage bank in the U.S Rate.
• Hate to be the bearer of bad news but more than likely they will decline your mortgage. Most if not all will decline with even a sniff of gambling on statements unfortunately. I had to use the Halifax as they at they dont ask for bank statements. Could be an idea for you unless their policies have changed.

A hard credit check happens after you apply for credit, when a lender or other company looks at your report and the search is noted on your credit history. A mortgage lender may consider multiple. And even if you're getting unemployment checks every week, that money is considered temporary income, so it can’t be used to qualify for a mortgage, says Jackie Boies, senior director of housing.

Getting approved for a mortgage can be challenging, but there are steps you can take to boost your chances.

Here, we reveal 10 things that could affect the likelihood of you securing a mortgage, and offer tips on how to overcome them.

1) Having large amounts of outstanding debt

Generally speaking, it is possible to get a mortgage with credit card debt.

Lenders may be reluctant to grant you a mortgage, however, if you have large amounts of outstanding debt from personal loans and credit cards.

This is because having to pay off other loans will directly impact how much (and whether) you can afford your mortgage repayments each month.

For this reason, it’s really important to pay down as much debt as possible before making a mortgage application.

While your student loan will not be considered the same as other forms of debt, your lender may take it into account when working out whether or not you can afford to take out a loan. Read will my student loan affect my mortgage? to find out more.

2) Having a bad credit score

If you’ve got a bad credit history, County Court Judgements (CCJs), or a bankruptcy on your record it can be really difficult to get approved for a mortgage.

This is because lenders use your credit history to judge your ability to stay on stop of debt.

Missing or making late payments on a previous mortgage, loan, credit card or even your mobile phone bill could potentially scupper your chances of being accepted for a mortgage.

All hope isn’t lost if you have an adverse credit history though, as it may be possible to get approved for a bad credit mortgage.

However, rates on bad credit mortgages can be high, so it may be better to spend time improving your credit score and then applying for a regular mortgage.

Can Gambling Stop You Getting A Mortgage Lender

3) Having no credit history at all

Applying for a loan with limited or no credit history is a bit like applying for a job without a CV.

Since your credit score lets lenders know how reliable you are at making repayments and handling your debt, you’ll need to have some form of history to be approved for such a large loan.

It’s important to check your credit score before applying for a loan and, where possible, take steps to build up a good credit score before making a mortgage application.

4) Not being on the electoral roll

The electoral roll allows lenders to verify your identity quickly. Not being registered will make it difficult for a lender to confirm who you are.

This could slow down the mortgage application process, as your lender will probably request additional identification checks, and it could even result in your application being rejected altogether.

The good news? Getting on the electoral roll couldn’t be simpler; all you have to do is fill out a form using the register to vote service on Gov.uk.

5) Buying a ‘non-standard’ property

The type of property you’re looking to buy could affect the success of your mortgage application.

Ex-local authority housing, for example, can be appealing as these types of home are often cheaper than others on the open market. Most lenders, however, are reluctant to grant mortgages on this type of property as they are considered more likely to lose value over time.

Similarly, you may find it difficult to get a mortgage for a flat above commercial premises like shops, pubs or restaurants, as they are at a greater risk of being affected by things like noises, smells, rubbish and security issues, which can also bring down the value of the property.

For more information check out our story, 16 properties to avoid if you want to get a mortgage.

6) Trying to borrow too much money

It’s important to do the maths and be realistic about how much money you can afford to borrow.

Typically, mortgage lenders will only lend a maximum of four-and-a-half times the combined annual income of you and anyone else you’re buying with. Asking for a loan above this threshold will likely result in your application be rejected – and you may well find that you’re offered less than the maximum.

• Find out more: how much mortgage can I borrow?

7) Being self-employed

Mortgage providers can be reluctant to approve a loan to self-employed workers.

This is because, without a contract of employment or regular payslips, it can be difficult to prove that you’ll be able to keep up with mortgage repayments.

If you’re self-employed and are hoping to buy a home, it’s vital to compile documents proving your past income and future opportunities for payment. Most lenders will want to see at least two years’ worth of accounts.

• Find out more: mortgages for self-employed buyers

8) Major lifestyle changes

Going through major lifestyle changes that could affect your finances, such as starting a family or going through a divorce, could negatively affect your mortgage chances.

Some lenders may partly base their decision on whether and how much to lend you on childcare fees, for example. Find out more in does having children ruin your mortgage chances?

Similarly, if you are expecting a child and going on maternity leave at the time of applying for a mortgage, lenders may be wary of how much you’ll be able to afford if you’re expecting a decrease in income. Read our guide on getting your mortgage when pregnant for more information.

And if you’re hoping to get a mortgage after getting divorced, it’s important to re-evaluate your financial circumstances, especially if you’re buying alone. Our guide on selling a house in a divorce shares everything you need to know about securing a new home.

9) Errors on your application

Lenders scrutinise every mortgage application with a close lens, so it’s really important to make sure all of the information you give your lender is correct and up-to-date.

Any discrepancies or inaccuracies on your application could not only slow down the loan process, it could also result in your loan being turned down altogether.

• Find out more: how to improve your mortgage chances

10) Applying to the wrong lender

So your finances are in great order, your credit score is impeccable; everything should be smooth sailing, right? Not always.

Each lender will have its own affordability criteria and may place more weight on certain factors. For example, while some lenders may be more willing to accept applications from households with growing families or self-employed applicants, others may have more rigid criteria.

It’s important to find the lender most likely to accept your financial and personal circumstances the way they are – and this is where the expertise of a mortgage broker can really help.

Speak to the experts

Whether you’re a first-time buyer or home mover, applying for a mortgage can be a stressful and daunting prospect.

Speaking to a mortgage broker can not only help you find the best mortgage deals, but also find the most suitable lenders for your personal and financial circumstances.

Here’s a new one from the wonderful world of mortgage underwriting.

Over in Ireland, some mortgage applicants are reportedly being denied mortgages because they have online betting accounts, according to the The Herald.

Apparently, the presence of a betting account is being used as criteria to approve or decline a home loan application, despite the fact that it’s perfectly legal to gamble over there.

When prospective borrowers submit their loan applications, mortgage underwriters are taking an extra hard look at bank statements to see if deposits to online gaming companies show up.

If they do appear, it can be grounds for denial, especially for those looking to execute a loan modification.

The general thinking is if you’ve got money on hand to gamble, you really aren’t struggling as much as you say you are, and thus don’t deserve to have your mortgage payment negotiated lower.

What Does Distressed Homeowner Actually Mean?

It makes perfect sense, and calls into question what exactly “distressed homeowner” really means these days.

Is it a homeowner who lost their job and can’t keep up with mortgage payments because they’re stretched too thin, or is it a homeowner who was used to the “good old days,” who isn’t willing to give up his or her spending habits in light of the new reality?

While gambling is a glaring problem, mortgage lenders are also reportedly looking at mobile phone and cable TV bills when evaluating a borrower’s level of distress.

I guess you may need to give up both HBO and your iPhone if you want to get help from your mortgage lender or the government.

Can Gambling Stop You Getting A Mortgage Broker

I’m not sure if they scrutinize those things stateside, but it’s hard to argue against it. A roof over your head is more important than what’s on the TV inside that home, right?

The takeaway here is that banks and lenders are getting more and more selective in handing out home loans.

So now more than ever it’s hugely important to do your homework, cross your T’s, and dot your I’s before applying for that mortgage.

[What credit score do I need to get a mortgage?]

Any mistakes or missteps could shut you out of the market, at a time when a super low mortgage rate could be the difference between staying in your home and renting.

In other words, be sure to take your time when applying for a mortgage. Don’t rush it, or you might be very sorry.

Read more:How to get the best mortgage rate.