Once you have found your perfect mortgage product, you will begin preparing your mortgage application. This mortgage application is not a simple form that needs a signature, you will need to attach supporting documents to evidence your income and affordability for this mortgage. The reason behind this is that lenders need to know who they are lending to and whether that applicant can afford to take out a mortgage.
Your supporting documents will include your bank statements, payslips, P60, photo identification and proof of deposit. The mortgage lender will perform an audit to look over each of these documents to work out whether you are a reliable applicant that can afford to take out a mortgage and keep up to date with the monthly payments.
As a mortgage broker in Sunderland, we often get the question, “What do they look for during this audit?”. The answer to that is everything! They are trying to find anything that could stop you from getting a mortgage. One example of something that your lender may be looking out for is gambling transactions on your bank statements.
But why do mortgage lenders care if you gamble?
Let’s take a look at why lenders look for gambling transactions on your bank statements and what you can do to show the lender that you are a reliable applicant.
Why do mortgage lenders care if I gamble?
Mortgage lenders don’t worry too much over gambling transactions on your bank statements, they worry when there are lots of them. There is a huge difference between betting on the grand national once a year and the occasional football game to betting every day, week in, week out.
Mortgage lenders will always look at two things when noticing gambling transactions on your bank statements: how often you gamble and how much you are gambling. When you are preparing your mortgage application, if you are a frequent gambler and like to go big, you may find that lenders may be put off by your mortgage application.
No one can tell you how to spend your money or live your life, however, mortgage lenders have a duty to lend responsibly and adhere to mortgage regulations. Mortgage lenders need to be wary of who they are lending to and make sure that the applicant is reliable and responsible with their finances.
As a mortgage broker in Sunderland, we often ask our customers, would you want to lend a large amount of money to someone who frequently gambles away their money? Maybe you would to a friend or family member, but lenders don’t know you and won’t be willing to take any risks that could lead to your home being repossessed.
Is it still possible to get a mortgage if I’ve got gambling transactions on my recent bank statements?
As mentioned in the previous section of the article, gambling is not illegal by any means, therefore, no one can stop you from doing it. On the other hand, large gambling transactions can have a negative impact on your ability to get a mortgage in Sunderland.
It is not impossible, however. Remember that it is down to the frequency of the transactions and the amount that is being gambled. If you gamble from time to time, you will likely find that these transactions will not have an effect on your chances, however, if you gamble all of the time, you may see that these transactions get brought up.
Even if you are a first time buyer in Sunderland with good credit, mortgage lenders will point out anything that could pose a threat to you not being able to afford a mortgage.
Is there anything else lenders wouldn’t want to see on my bank statements?
Your mortgage lender is trying to work out whether you are a reliable applicant or not. They want to know that you will be able to keep up to date with your monthly repayments. That being said, you may have guessed by now that they don’t just look for gambling statements on your bank statements, they look at a lot more!
You will have to supply at least three months’ bank statements with your mortgage application; mortgage lenders will be looking at every single incoming and outgoing over these months to take a look at what you are spending your money on. This will include any repayments that you currently owe such as paying off your credit card, your car loan etc.
If you have an overdraft, mortgage lenders will look at how often you are using it, how far you are going into it and why you are going into it. In a situation where you dip into your overdraft now and again, just when you need to, this will likely be okay with the mortgage lender. Whereas, if you were to be frequently dipping into your overdraft and have been at minus figures for a few months, lenders will likely start to doubt your ability to afford a mortgage.
What can I do to improve things?
There is always room for improvement when it comes to finances. As our mortgage advisors in Sunderland recommend, be smart and sensible.
In the months leading up to your mortgage application, you should be considering reviewing your bank statements and taking a look at them from a lender’s point of view. This could help you get an idea of where to start when it comes to making sure that you present yourself as a reliable and trustworthy applicant. Even if you are a first time buyer in Sunderland with good credit, we would still recommend doing this so that you get an idea of what your mortgage lender is going to be looking at.
Regarding gambling transactions on your bank statements, make sure that you gamble responsibly. The warning is there for both your financial and mental well-being.
How can a mortgage broker in Sunderland help?
As your mortgage broker in Sunderland, our job is to take all of the stress away from the mortgage process and give you the advice that you need.
During your free mortgage appointment with one of our mortgage advisors in Sunderland, we will go through your affordability and look through your bank statements. This will help you get an idea of what your mortgage lender will be looking for.
We want you to have the confidence that your bank statements look the best that they can do in front of the mortgage lender. Let us help you achieve this, get in touch with our team today and book a free mortgage appointment.
Date Last Edited: 08/08/2023
