One question that often arises is whether gambling affects mortgage applications and the simple answer is – yes it does. If a bank is weighing up whether they think you will be able to repay the mortgage loan, they will want to know if there are any concerns that could potentially stop you from doing so. There are nearly 10 million mortgages in existence in the UK, according to the FCA, with more than £1 trillion owed. The typical first-time buyer borrows £137,000, with those remortgaging.
We're here to help
'All the staff have been really helpful and I can honestly say I'm glad that I'm here!' Learn more about us
Published: Wednesday, 16 April 2014 by
Anyone who gets caught up in the downward spiral of problem gambling finds only too soon that the negative impact on his or her life can be devastating. Finding money to gamble is usually the most immediate and obvious issue which brings with it enough problems, but in addition an all consuming compulsion to gamble at any cost leads to difficulties which affect employment, quality of life, family relationships and mental and physical health.
And of course, problem gambling doesn't just affect the individual. It's estimated that for every problem gambler at least 10 other family members, friends and colleagues are also directly affected.The negative impact on wider society is only just beginning to be recognised and an analysis of those problem gamblers in the Gordon Moody Association residential treatment programme during 2012 and 2013 gives the following insights:
Does Gambling Affect Mortgage Uk Calculator
Financial cost
The amounts gambled away varied between £5,000 and £3m. Of those gambling in the range £10,000 - £50,000, 59 people claimed to have gambled away a total amount of £1,225,194 with an average amount of £20,766 gambled per person.
Even for those with a job this is a sizeable amount to have to find on top of living expenses and, since the majority were unemployed (65% in 2013, 78% in 2012), all this gambling money had to be funded from other sources - borrowing from family and friends, high street money lenders, pawnshops and loan sharks.
Many Gordon Moody Association residents also report that families remortgage their houses and go into debt themselves in order to try and help sort out the problems of their loved one.
Many problem gamblers get into huge debt and often resort to illegal activities to fund their addiction including stealing from their loved ones and their employers as well as turning to other illegal ways of making money to gamble.
Those who are unable to cope with their debts may choose or be forced into bankruptcy and society then carries the rest of the debt. If court costs are involved this adds to the total financial cost.
Those who are unemployed and unable to work due to their addiction are surviving on state benefits which at the very minimum amount to £57.35 per week (Jobseekers Allowance) and may amount to a great deal more. Assuming six months unemployment and at the basic rate of benefit this is an additional cost of £1,491 per person for 18 - 24s and £1,882 for adults who are 25+.
Criminality
If a problem gambler turns to crime then police time, court costs, probation services and prison services and other support services need to be factored into the cost to society. The average annual overall cost of a prison place in England and Wales for the financial year 2011-12 was £37,649 (NOMS).
Health services
Whilst problem gambling has not until recently been identified officially as a health issue and little or no funding is currently available for treatment from the NHS, health services are often involved as many problem gamblers develop physical and mental health issues as a result of stress and anxiety and the effects of other risk taking behaviours.
The effects on children
Sadly many family relationships breakdown as a result of problem gambling and children are the innocent victims not only because of the emotional distress created within the home but also often the loss of contact with their parent who leaves and the poverty which can result because of the behaviour of the problem gambler.
With this in mind it is clear to see that the issues and costs associated with any problem gambler can extend far beyond the basic financial cost and helping the recovery of one individual will have a much wider positive social impact.
Supporting you
'I'm very lucky to be here with so many other addicts who are positive and want to change and achieve recovery' Learn about our programme
Bank statements provide lenders an insight into the lives of prospective borrowers, but some activities could result in an application unexpectedly being turned down.
Providers are looking for any clues that customers may struggle to keep up with repayments in the future.
Here are the bank statement activities that brokers say act as a red flag to lenders, and at the worst, mean applications are rejected.
1) Gambling habits
Bank statements detailing payments to bookies can instantly stop an application in its tracks, brokers warned – even when the borrower is an otherwise perfect candidate.
Malcolm Davidson, managing director at mortgage broker UK Moneyman, told us of a case in which one of his clients had a perfect credit history, but a prospective lender identified a gambling habit on bank statements.
Davidson said: 'It was really the type of customer that any lender would normally lend to. They gambled with their own money and there was no overdraft.'
After requesting more information, the lender eventually declined the case. Davidson said the client had effectively been punished for their choice of vice.
Ip casino local number list. Rachel Lummis from Xpress mortgages agreed gambling transactions cause problems.
She said: 'Many of us like a flutter on the grand national – that won't affect you – but if you have daily amounts going out to companies, such as Bet Fair or Ladbrokes then that can cause an issue.'
2) Being overdrawn
Dipping into overdrafts could suggest a prospective borrower struggles to manage their money effectively and this will set alarm bells ringing for lenders.
Lummis said: 'A rather common mistake is when a bank offers you that service of letting you go overdrawn, however as long as you make payment by the afternoon then it is fine. Casino florence oregon.
'That is rather generous of them and you are playing by the rules but on your statement, it will show those several transactions as over your overdraft.
'The fact that it's sorted by the end of the day and accepted by your bank doesn't matter.
'Other lenders will see this as going over your overdraft limit and if you do this frequently that's enough for your mortgage to be declined.'
3) Payday loans
Nick Morrey, product technical manager at John Charcol, said payday loans will raise problems with any mainstream lender.
He added: 'It implies you cannot keep to your monthly net income so a new, large mortgage commitment could be a problem in the future.'
Bounced direct debits, where the account holder has not had enough funds in their account at the end of the month is another stumbling block, Davidson advised.
4) Unexplained cash deposits
Regular payments from family and friends could be viewed as a financial commitment and affect overall affordability, Morrey warned.
Borrowers will also need to have a reasonable explanation for any unusual payments or larger payments.
One-off cash payments can raise fears among lenders over money laundering.
And those who gift part of deposits to borrowers, will often need to provide proof of wealth, Davidson said.
5) Bank statement jokes
Joke references to friends or family can cause problems, according to brokers.
Lummis said: 'A bit of light-hearted banter should not be played out on your bank statements.
'A lender doesn't want to see a friend paying you back for that meal you had last week, with a crude entry that says ‘payment for drugs' or ‘sex last night'.'
6) Suggestive card payments
Davidson told of a case where the lender spotted a one-off payment to Mamas & Papas.
Avanti says only that it will ' occupy an orbital position at 21.5 degrees east and gives the company access to new opportunities.' The deal will close by the end of this year. The Artemis satellite operates in the highly specialised L-band (1-2 GHz). The two other Avanti satellites (Hylas-1 and the planned Hylas-2) operate in the Ka-band. Avanti's Watherston said the company's planned orbital slots are not those with a May 2012 deadline. 'This company has been subjected to more due diligence than any other satellite operator,'. Also known as MGA, this is the legal Avanti Orbital Slots body that aims to regulate all gambling activity in Malta. One of their many roles includes licensing of gambling and betting sites. In comparison to others, Avanti Orbital Slots an MGA licence is considered as streets ahead of Curacao but still lagging behind the UK. Launched in April 2018, HYLAS 4 doubles our capacity over EMEA. Using the latest Ka-band technology, it has 64 fixed beams serving Africa and Europe, as well as four independent steerable beams able to be steered anywhere visible on the Earth's disk from 33.5˚W. Avanti Orbital Slots 100% up to £200 + 11 welcome spins at Videoslots With a huge games selection, 24/7 support & regular bonuses, Videoslots well deserves their popularity. Make a deposit to receive a 100% bonus up to £200 + 11 welcome spins. Avanti orbital slots.
The lender then went on to ask if the borrower was pregnant, which could impact their affordability further down the line.
If a problem gambler turns to crime then police time, court costs, probation services and prison services and other support services need to be factored into the cost to society. The average annual overall cost of a prison place in England and Wales for the financial year 2011-12 was £37,649 (NOMS).
Health services
Whilst problem gambling has not until recently been identified officially as a health issue and little or no funding is currently available for treatment from the NHS, health services are often involved as many problem gamblers develop physical and mental health issues as a result of stress and anxiety and the effects of other risk taking behaviours.
The effects on children
Sadly many family relationships breakdown as a result of problem gambling and children are the innocent victims not only because of the emotional distress created within the home but also often the loss of contact with their parent who leaves and the poverty which can result because of the behaviour of the problem gambler.
With this in mind it is clear to see that the issues and costs associated with any problem gambler can extend far beyond the basic financial cost and helping the recovery of one individual will have a much wider positive social impact.
Supporting you
'I'm very lucky to be here with so many other addicts who are positive and want to change and achieve recovery' Learn about our programme
Bank statements provide lenders an insight into the lives of prospective borrowers, but some activities could result in an application unexpectedly being turned down.
Providers are looking for any clues that customers may struggle to keep up with repayments in the future.
Here are the bank statement activities that brokers say act as a red flag to lenders, and at the worst, mean applications are rejected.
1) Gambling habits
Bank statements detailing payments to bookies can instantly stop an application in its tracks, brokers warned – even when the borrower is an otherwise perfect candidate.
Malcolm Davidson, managing director at mortgage broker UK Moneyman, told us of a case in which one of his clients had a perfect credit history, but a prospective lender identified a gambling habit on bank statements.
Davidson said: 'It was really the type of customer that any lender would normally lend to. They gambled with their own money and there was no overdraft.'
After requesting more information, the lender eventually declined the case. Davidson said the client had effectively been punished for their choice of vice.
Ip casino local number list. Rachel Lummis from Xpress mortgages agreed gambling transactions cause problems.
She said: 'Many of us like a flutter on the grand national – that won't affect you – but if you have daily amounts going out to companies, such as Bet Fair or Ladbrokes then that can cause an issue.'
2) Being overdrawn
Dipping into overdrafts could suggest a prospective borrower struggles to manage their money effectively and this will set alarm bells ringing for lenders.
Lummis said: 'A rather common mistake is when a bank offers you that service of letting you go overdrawn, however as long as you make payment by the afternoon then it is fine. Casino florence oregon.
'That is rather generous of them and you are playing by the rules but on your statement, it will show those several transactions as over your overdraft.
'The fact that it's sorted by the end of the day and accepted by your bank doesn't matter.
'Other lenders will see this as going over your overdraft limit and if you do this frequently that's enough for your mortgage to be declined.'
3) Payday loans
Nick Morrey, product technical manager at John Charcol, said payday loans will raise problems with any mainstream lender.
He added: 'It implies you cannot keep to your monthly net income so a new, large mortgage commitment could be a problem in the future.'
Bounced direct debits, where the account holder has not had enough funds in their account at the end of the month is another stumbling block, Davidson advised.
4) Unexplained cash deposits
Regular payments from family and friends could be viewed as a financial commitment and affect overall affordability, Morrey warned.
Borrowers will also need to have a reasonable explanation for any unusual payments or larger payments.
One-off cash payments can raise fears among lenders over money laundering.
And those who gift part of deposits to borrowers, will often need to provide proof of wealth, Davidson said.
5) Bank statement jokes
Joke references to friends or family can cause problems, according to brokers.
Lummis said: 'A bit of light-hearted banter should not be played out on your bank statements.
'A lender doesn't want to see a friend paying you back for that meal you had last week, with a crude entry that says ‘payment for drugs' or ‘sex last night'.'
6) Suggestive card payments
Davidson told of a case where the lender spotted a one-off payment to Mamas & Papas.
Avanti says only that it will ' occupy an orbital position at 21.5 degrees east and gives the company access to new opportunities.' The deal will close by the end of this year. The Artemis satellite operates in the highly specialised L-band (1-2 GHz). The two other Avanti satellites (Hylas-1 and the planned Hylas-2) operate in the Ka-band. Avanti's Watherston said the company's planned orbital slots are not those with a May 2012 deadline. 'This company has been subjected to more due diligence than any other satellite operator,'. Also known as MGA, this is the legal Avanti Orbital Slots body that aims to regulate all gambling activity in Malta. One of their many roles includes licensing of gambling and betting sites. In comparison to others, Avanti Orbital Slots an MGA licence is considered as streets ahead of Curacao but still lagging behind the UK. Launched in April 2018, HYLAS 4 doubles our capacity over EMEA. Using the latest Ka-band technology, it has 64 fixed beams serving Africa and Europe, as well as four independent steerable beams able to be steered anywhere visible on the Earth's disk from 33.5˚W. Avanti Orbital Slots 100% up to £200 + 11 welcome spins at Videoslots With a huge games selection, 24/7 support & regular bonuses, Videoslots well deserves their popularity. Make a deposit to receive a 100% bonus up to £200 + 11 welcome spins. Avanti orbital slots.
The lender then went on to ask if the borrower was pregnant, which could impact their affordability further down the line.
One way for borrowers to avoid bank statements falling foul of lender underwriting is to shift the majority of spending to a credit card in the run-up to submitting an application, which is then paid off in full each month.
Does Gambling Affect Mortgage Ukraine
Alternatively switching some payments, such as gambling, to cash could also help ease applications through.
