Getting a Mortgage is something many have to do in life. In can be tricky, but especially so if you have betting accounts.
Some people say that gamblers will always struggle to get a mortgage, but this isn’t true. Having betting accounts and getting a mortgage is possible. You just have to be smart about it.
In this article, we’re going to give you some helpful tips that can make all the difference when the time comes for you to apply for a mortgage.
Why Banks Don’t Like Betting…
Having betting transactions on your bank statement definitely makes banks wary of your ability to make repayments. It’s highly unfortunate because what people do with their spare cash shouldn’t be anyone’s business apart from their own. Especially when you consider some of the banks own morals, historically.
The reality though is that banks will definitely look unfavourably at gambling. There is almost no point explaining to them that you are a successful gambler, successful trader or a successful matched bettor. They don’t want to hear it. They won’t take the time to understand it and they won’t ‘just believe you.’
Banks will never like betting, some think it will affect your credit rating too. They have seen too many problem gamblers in the past. That’s a sad fact and we have to live with it. Banks are all about avoiding risk, which is ironic given they crashed the economy only years ago by taking a huge amount of risk!
Keeping Your Mortgage Application Clean & Betting
If the banks are going to look at betting poorly, we need a way around that. We have a handful of tips so that you can continue betting, trading on Betfair and Matched Betting while not harming your chances of a mortgage:
- Open A Second Bank Account. This one is obvious but you’d be surprised how many people don’t think about it! This is the best option. Have one bank account where your wage goes every month and your direct debits come out – this bank account is for your mortgage application in the future. Then have a second bank account for betting and anything else that you wouldn’t like to show in your mortgage application. You can withdraw some cash from account one and deposit in into account two so there is no online trail connecting them. You are then free to deposit and withdraw as many times as you like to gambling sites.
- Get A Pre-Paid Debit Or Credit Card. This is another way to avoiding deposit and withdrawals coming up on your main bank account. Always use cash for loading these cards. The cards may have limits and that might hinder your betting; however, owning your own home is a massive step in life so limits to your betting for a few months while you consider applying for a mortgage is a small price to pay.
- Cash Betting In Shops. This is unfavourable for a lot of people; however, it’s still an option and we have to mention it. It won’t work for matched bettors or Betfair traders, but if you love a bet on a Saturday afternoon and don’t want it coming up on your bank statement then it’s an option.
- Stick To Using PayPal, Skrill or Neteller For Betting. If you’re going to go down this route; make sure you read the T&C’s with bookmakers. That applies especially if you are matched betting, a lot of offers don’t apply when using these deposit methods. Using these three platforms isn’t ideal but think of it as an easy way to clean your bank account statement for three to six months before applying.
Can a Full-Time Gambler Get a Mortgage?
This is unlikely. However, as always, there are cases in which it happens. If you are a full-time trader or matched bettor, your best option to get a mortgage is to go to a broker. It’s their job to get the mortgage application across the line and they are the experts so let them do the work.
You will need a very sizeable deposit and have to make a very strong case that your income is “steady.” Even then, it’s still unlikely. Banks love set income per month and unfortunately no matter how good a trader you are, you just couldn’t class the income as steady in the eyes of a bank. Your best option would be a very large deposit and a small mortgage – therefore reducing the risk for the bank.
Another option is to get a guarantor for you. Likely a parent or a very close friend. The mortgage is in their hands then, and if something was to go wrong the guarantor could lose their asset. This isn’t ideal, but if you were very confident that you could easily repay the mortgage; then it’s an option.
Getting A Mortgage While Betting:
As you can see from above; it’s difficult to get a mortgage while betting but it is possible.
Splitting your activity is by far and away from the best option. Have one bank account that has no betting on it and on the face of things, you just pay your bills and live a normal life – then the second bank account is for betting. Cash betting in shops and the likes of PayPal are ok options, but a bank account and debit card are by far and away from the best option.
Remember you only need roughly six months bank statements to apply for a mortgage. The bank may only need three months, or sometimes they may ask for longer but this is rare. So we are only talking about a small window here to make yourself look like you don’t gamble.
It’s highly unfortunate that people have to do this because of the way banks look at gambling, but that isn’t going to change. Getting a mortgage while betting is possible, but you have to plan for it and act smartly with your activity. Understand what the bank wants to see and what they don’t want to see; then you’re ready to apply for that dream house!
Had some first hand experience of this recently. My Broker advised that they will treat losses as an expense and discount wins entirely, large wins may be treated as a large bettor not a winning one. Different mortgage providers will have their own way of calculating it all up. I cut back massively for 3 months and used paypal just to be sure. If (like me) you were trying to maximise the mortgage offer be careful, if you had a large deposit and an easily affordable mortgage you’d get a bit more leeway. I’d always say go for a broker too and be honest, in the long run they will of saved me thousands
Thanks for sharing your experience, Didius.
Great article Caan. Useful information that did help me.
Thank you so much. <3