If you deposit £200-300 a month or more regularly into a casino online, the banks will flag it up. Managing Your Credit Lines Applying for loans or credit cards will these days be done on credit ratings and affordability. What you buy and where you shop may affect your credit score. Back off online gambling enforcement. The European Commission ruled this week that U.S. Laws that ban most forms of online gambling discriminate against European companies and violate international trade agreements.
The major banks and building societies are starting to lend more to borrowers with good credit and a hefty deposit. Some banks will examine everything going in and out of your bank account, and those will typically dish out the best interest rates. Other lenders might not be as stringent.
The important thing is to get a good mortgage broker. They can do all the relevant checks first before recommending you to a bank. The broker will also assess your gambling for any pitfalls, however.
PROFESSIONAL GAMBLING:
Online Gambling Affect Credit Rating Chart
If you’re a professional gambler, lenders will not look favourably on you if you are making your living from slots and sportsbetting. With no tax on UK gambling winnings, gamblers will effectively have no taxable income – and it doesn’t matter how well you’ve hit that jackpot on Mega Moolah.
Lenders don’t see gambling as a sustainable source of income (and even ‘skill’ games like poker are considered gambling). Some unsecure lenders will be more lenient on your information, but the interest rates could be higher.
One tip that professional gamblers use is to have a secondary source of income, like a part-time PAYE job with a contract. Gambling winnings can go towards a deposit while the contract can be used to apply for the mortgage itself.
CASUAL GAMBLING:
Even “hobby” gamblers can fall foul of the lenders. One mortgage broker told us:
“We have had a client turned down by a lender for spending a just a few hundred pounds a month or so on an online bingo website. ”
The key is how regular the gambling is. If you deposit £200-300 a month or more regularly into a casino online, the banks will flag it up.
Despite what you may have heard, mortgage advisors don’t spend their spare time sitting in a lair somewhere, stroking their beard while devising reasons why you can’t have a mortgage.
In fact there’s a lot of myths out there about what lenders are looking for. Here’s five things that won’t actually ruin your mortgage application.
1. Occasionally gambling or spending your money on stuff you don’t need
There’s a lot of information out there that suggests that any gambling is an absolute no-go, but spending the odd tenner on the races or on what will happen in the Christmas episode of Eastenders isn’t a big deal.
Gambling is an issue only if it’s frequent, if you place bets you can’t afford, or if your mortgage advisor thinks it might impact your mortgage repayments.
The same goes for spending money on ‘silly’ things. We all do it, so go out and have a good time! Just make sure to follow your budget and to do it all in moderation.
2. Applying for a mortgage on your own
Let’s get it out of the way: yes, it is possible to get a mortgage on your todd. However, there are certain considerations, the big one being that your mortgage amount is relative to your income. If you’re in a partnership or are married and want a mortgage, your income is combined.
The deposit is also a lot easier to save up if you’ve got a lovely other half to help out. That said, your mortgage application won’t be rejected because you’re applying on your own.
3. You don’t know what your credit rating is
Online Gambling Affect Credit Rating 2017
If you’re a fan of spending but you’re not too good at keeping track of your repayments (sure the money comes out of your account at the end of the month – no bother!), a bad credit rating can impact your application.
Hop over to the Irish Credit Bureau and you can apply for a credit report online for only €6. If your credit rating is on the negative side, make sure to tell your mortgage advisor as soon as possible so you’ll have no financial skeletons waiting to jump out of your closet.
While not knowing won’t cause issues, a bad credit rating will have to be taken into account – but we reckon that’s fair enough!
4. Having a messy paper trail
When you go into your mortgage meeting, the ideal scenario is that you’ll have your documents organised and in tip-top shape. You’ll be able to show your mortgage advisor how much you’ve saved each month, how you spend your money, and how good you’ll be at meeting your mortgage repayments.
While that certainly helps things along, a messy paper trail isn’t the end of the world. Incase your paperwork has disappeared to the same place as all your matching socks, these are the documents you’ll need to bring to your mortgage meeting:
PAYE employees
• Photo ID
• Proof of address
• P60 (or 3 months consecutive payslips)
• Certificate of income
• Bank statements for the last 6 months
Self-employed
• Photo ID
• Proof of address
• 3 years audited/trading accounts
• Confirmation of your tax position
• 3 years Revenue Notice of Assessment
• 6 months business current account statements
5. Being in negative equity
Negative equity happens when the value of your house is less than the amount you owe on your mortgage; if you sold your house, you wouldn’t be able to fully clear your mortgage.
A lot of Next Time Buyers think that being in negative equity means they won’t be able to get another mortgage, but that’s not true.
With Negative Equity Home Movers, you can transfer the outstanding balance to a new loan on your next house. As with most second houses, you can decide whether to trade up or down (finances pending).
Thinking of applying for a mortgage?
Whether you’re a first time or next time buyer, EBS has options to suit you. If you want to buy a house or you’re considering trading up or down, try our mortgage calculators or book a 30 minute mortgage meeting now!
EBS d.a.c. is regulated by the Central Bank of Ireland.
The content of this blog is expressed in broad terms and is limited to general information purposes only. Readers should always seek professional advice to address issues arising in specific contexts and not seek to rely on the information in this blog which does not constitute any form of advice or recommendation by EBS d.a.c.
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