mortgage advice

43
Found 27th Jul 2016
Any mortgage advisors out there?

Just had an offer accepts on a house. Will having a betting history on my account affect my chances of getting a mortgage?

My wife and I have each been putting £600 aside each month in savings and paying rent so affordability is not an issue.

Just a little worried.
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43 Comments
So you already put an offer in on a house without an approved mortgage? If so better hope you get approved for the loan...
Apart from checking your credit rating on Experian, when you apply for a mortgage you will find out....

You really should have got a mortgage offer before bidding on the house. The seller would be well within his rights to sell to somebody else as this could hold things up
Edited by: "tallpete33" 27th Jul 2016
it shouldn't do unless your gambling has caused you to go into debt in the past. my OH had thousands of pounds going out to the bookies every month but never had a problem with getting any mortgages. At any one time, my OH had 5 to 6 mortgages!
Should have done a mortgage in principle.

Waiting until after an offer is accepted to worry about it seems a tad late!
Don't know why all the doom and gloom. I've never had mortgages in place before offering for houses.....doesn't say anywhere that you have to. You can get mortgages approved within a week or less so it's not going to delay much. Usually makes more sense to get them just after you have agreed a price as you know exactly what you need and may be eligible for a different deal.

As for your actual question, as long as your betting history didn't actually put you into any debt that shows on your credit history, it won't make a difference. It's your credit file and bank statements they will be looking at.
Edited by: "t_kaay" 27th Jul 2016
Original Poster
It's a new build show home. It's all being done by their advisor. He's done an eligibility check and said they could have given us more than 100k more than we needed. My credit score is 991 so that's ok. I've got to submit my statements etc next week for the mortgage.
fearghalg

It's a new build show home. It's all being done by their advisor. He's … It's a new build show home. It's all being done by their advisor. He's done an eligibility check and said they could have given us more than 100k more than we needed. My credit score is 991 so that's ok. I've got to submit my statements etc next week for the mortgage.



they only look at your bank statements to confirm earnings, not expenses.
fearghalg

It's a new build show home. It's all being done by their advisor. He's … It's a new build show home. It's all being done by their advisor. He's done an eligibility check and said they could have given us more than 100k more than we needed. My credit score is 991 so that's ok. I've got to submit my statements etc next week for the mortgage.



Then in that case theyre only interested in your net monthly income and cost of mortgage payment (for affordability). They wont give a stuff on the other things you spend your "disposable" income on, be it gambling or 10000 mars bars a month.
Original Poster
They were happy to take our offers. And they accepted after some counter offers. Put £500 down today. £75 which is non refundable if it falls through. I'd hate to lose out on it just because a couple 100 gambled in the last couple months. I've got no overdraft and one credit card for my work expenses which i get to claim back and I pay in full monthly.
Original Poster
mutley1

they only look at your bank statements to confirm earnings, not expenses.



Is that true?
Original Poster
t_kaay

Don't know why all the doom and gloom. I've never had mortgages in place … Don't know why all the doom and gloom. I've never had mortgages in place before offering for houses.....doesn't say anywhere that you have to. You can get mortgages approved within a week or less so it's not going to delay much. Usually makes more sense to get them just after you have agreed a price as you know exactly what you need and may be eligible for a different deal.As for your actual question, as long as your betting history didn't actually put you into any debt that shows on your credit history, it won't make a difference. It's your credit file and bank statements they will be looking at.



The gambling transactions will show on my statements - online accounts. I shut them all down around 2 months ago.
fearghalg

Is that true?


Yes.
Not true!
fearghalg

Is that true?



yes. mortgages are calculated on a multiplier of your annual earnings so they want to see the bank statements which shows earnings.

some people have more than one bank account, where the expenses come out of one account but their salaries are paid into another. in this case, the bank would want to see the one with the salary credits. i have several bank accounts and i only ever send in the one with the salary credit.
Banned
fearghalg

Is that true?



No its not true.

But they wont look at your gambling habits just your normal expenditure & credit commitments
Banned
Billyidoliser

Not true!



Of course it isnt true but some "wise" people on here will insist it is which in their world makes it true
Banned
mutley1

yes.



Mutley... It is not true. They look at all expenditure & commitments but focus of credit commitments & normal expenditure to live.

There will not be a separate column for "gambling habits"
Edited by: "YouDontWantToKnow" 27th Jul 2016
YouDontWantToKnow

Mutley... It is not true. They look at all expenditure & commitments but … Mutley... It is not true. They look at all expenditure & commitments but focus of credit commitments & normal expenditure to live. There will not be a separate column for "gambling habits"



not for the mortgages that i have applied for. they asks specifically to see the statements that shows proof of income. i only send in one set with the income on.
Original Poster
Appreciate all the comments. Are any of you guys working in the mortgage sector?
fearghalg

Appreciate all the comments. Are any of you guys working in the mortgage … Appreciate all the comments. Are any of you guys working in the mortgage sector?



i doubt you will find anyone on hukd who works in the mortgage sector as this is too specific. we are relating our experiences of applying for mortgages. in any case, your gambling payments will have no adverse effect on your mortgage as risks assessment aren't that complex for mortgages.

i am a risk analyst and i also build financial software so i have a good idea how risks are used in financial products.
Original Poster
mutley1

i doubt you will find anyone on hukd who works in the mortgage sector as … i doubt you will find anyone on hukd who works in the mortgage sector as this is too specific. we are relating our experiences of applying for mortgages. in any case, your gambling payments will have no adverse effect on your mortgage as risks assessment aren't that complex for mortgages.i am a risk analyst and i also build financial software so i have a good idea how risks are used in financial products.



Thanks for the advice much appreciated.
mutley1

not for the mortgages that i have applied for. they asks specifically to … not for the mortgages that i have applied for. they asks specifically to see the statements that shows proof of income. i only send in one set with the income on.



​things have changed a lot in the past couple of years. they scrutinise expenditure a lot more now but small gambling transactions should have minimal impact.
mutley1

not for the mortgages that i have applied for. they asks specifically to … not for the mortgages that i have applied for. they asks specifically to see the statements that shows proof of income. i only send in one set with the income on.




Things changed in 2014, unless you bank with the mortgage lender for all banking they will need copies of statements and savings accounts where deposits came from.

theguardian.com/mon…eck

marathonic

​things have changed a lot in the past couple of years. they scrutinise e … ​things have changed a lot in the past couple of years. they scrutinise expenditure a lot more now but small gambling transactions should have minimal impact.



i have only ever been asked about expenses when applying for a mortgage where I needed a lot more than the standard multiplier of my salary. in this case they had to do a proper risk assessment as they were going to lend me a lot more than they would normally do.

it may depend on the lender as to how much detail they look at and it will also depend on how much LTV you are looking for.
They ask about your regular expenses as part of their checks to see if you can afford the repayments. Your flutters on the horses or whatever you betted on a few months ago won't make any difference. As you said, you were well within the lending criteria for them to be able to offer you another 100k. Chill out. Don't worry.
So much goes info about mortgages. The list could go on but in a nut shell someone will offer you a mortgage based on your deposit for one (this is what I was told). They say 10% is normally a minimum for an average property. Your income and any other peoples income for the mortgage such as partner etc. If you have dependents such as children. They have to ensure you can comfortably pay the monthly repayments without any issues. You have got an offer accepted. I would have personally tried to apply and see if you can borrow and how much. This is the information you can use to know what kind of value/size house you can buy. It's a stressful time but I am sure it will work out for you, good luck.
Edited by: "loopylloyd" 28th Jul 2016
and more to your question. I don't personally know about betting. But one thing I believe they do not like to see on bank statements (they look at to gauge how much you earn etc) is using payday loans or lenders such as Wonga as its classed as "irresponsible borrowing". More HUKD users may know more about this. I am in no way a mortgage expert or advisor. I have learnt more about mortgages since owning my own house. Use the advisors for free sessions (Banks etc). Get to learn a bit about the process. That's my advice, it costs no money as long as you don't proceed etc.
Edited by: "loopylloyd" 28th Jul 2016
Seems strange that you are allowed to make an offer without proving funds, thought that was brought in 3 years ago?
just do the checks yourself with Experian and the other big one?
Banned
katchiib

So you already put an offer in on a house without an approved mortgage? … So you already put an offer in on a house without an approved mortgage? If so better hope you get approved for the loan...



Chill meat balls, the agents should have requested the paper work for the mortgage in principal..

If they didn't, the seller should have used a more competent agent
fearghalg

Is that true?



​welk kind of. Though in my experience theyve asked for pay statements too. As for your expenses, they do ask what yours are, but dont ask for evidence. Basically its all down to "affordability" now a days. They akso take into account other incomes like child benefit.
mutley1

i doubt you will find anyone on hukd who works in the mortgage sector as … i doubt you will find anyone on hukd who works in the mortgage sector as this is too specific. we are relating our experiences of applying for mortgages. in any case, your gambling payments will have no adverse effect on your mortgage as risks assessment aren't that complex for mortgages.i am a risk analyst and i also build financial software so i have a good idea how risks are used in financial products.



I have just completed a mortgage last month. They asked for all incomes and outgoings including those of expenses and regular payments including down to the minor things.

This includes my day rate, expenses, monthly music sub. Any and all outgoings including those of gambling habits if any.

Sorry just to add, if things don't match what you give as evidence i.e. bank statements, credit card statements or the credit check, this will have repercussions on your borrowing.
Edited by: "B.B" 28th Jul 2016
katchiib

So you already put an offer in on a house without an approved mortgage? … So you already put an offer in on a house without an approved mortgage? If so better hope you get approved for the loan...


A mortgage agreed in principle is generally all that's required.
ipswich78

A mortgage agreed in principle is generally all that's required.


Yeah, but OP did not say they had an agreement in principal in the post.
katchiib

Yeah, but OP did not say they had an agreement in principal in the post.


Your comment suggested an approved mortgage is required before you can make an offer on a house, it isn't. That's what I was responding to.
From my experience a mortgage agreed in principle isn't worth the paper it's written on. We had an agreement in principle (which took all of 2 minutes to get) before we put an offer in on our house, but once the offer was accepted we then had to put in the full application which involved bank statements, questions around expenses etc etc. In any case you're unlikely to get a fully approved mortgage before you put an offer in as you wont know how much mortgage you need till an offer is accepted.

When we were applying for ours I read that because of the new mortgage rules (MMR?) there is now a far greater scrutiny over your outgoings and one of the things they look at is gambling payments, however I had a few deposits with bookies on my statements (not a huge sum of money mind you) and it wasn't even mentioned or queried.
Original Poster
jamiebarry1

From my experience a mortgage agreed in principle isn't worth the paper … From my experience a mortgage agreed in principle isn't worth the paper it's written on. We had an agreement in principle (which took all of 2 minutes to get) before we put an offer in on our house, but once the offer was accepted we then had to put in the full application which involved bank statements, questions around expenses etc etc. In any case you're unlikely to get a fully approved mortgage before you put an offer in as you wont know how much mortgage you need till an offer is accepted.When we were applying for ours I read that because of the new mortgage rules (MMR?) there is now a far greater scrutiny over your outgoings and one of the things they look at is gambling payments, however I had a few deposits with bookies on my statements (not a huge sum of money mind you) and it wasn't even mentioned or queried.



I think I have around 3-400 in May, but also winnings back in. I have since closed down the account and have no betting showing on my statements for two months. I hope it doesn't ruin my application. I wasn't spending beyond my means it was disposable income after rent, bills, and savings of £600 per month.
Go NODDLE its a free credit report..I work in mortgages and we tell all our customers to check their credit report on noddle.You do need to put card details in this is tho check its your card and you live at that address in case its someone else trying to get your report..its brilliant
fearghalg

I think I have around 3-400 in May, but also winnings back in. I have … I think I have around 3-400 in May, but also winnings back in. I have since closed down the account and have no betting showing on my statements for two months. I hope it doesn't ruin my application. I wasn't spending beyond my means it was disposable income after rent, bills, and savings of £600 per month.



As long as you can demonstrate it's still affordable I think you'll probably be ok.
Original Poster
sharoncadnant

Go NODDLE its a free credit report..I work in mortgages and we tell all … Go NODDLE its a free credit report..I work in mortgages and we tell all our customers to check their credit report on noddle.You do need to put card details in this is tho check its your card and you live at that address in case its someone else trying to get your report..its brilliant



My score is 987. Just checked it. It says it dropped 12 points because I have used a lot of my credit availability (work expenses) so that'll get paid back to me tomorrow.

Did you used to work for Northern Rock perchance?!?! oO

mutley1

i doubt you will find anyone on hukd who works in the mortgage sector as … i doubt you will find anyone on hukd who works in the mortgage sector as this is too specific. we are relating our experiences of applying for mortgages. in any case, your gambling payments will have no adverse effect on your mortgage as risks assessment aren't that complex for mortgages.i am a risk analyst and i also build financial software so i have a good idea how risks are used in financial products.


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