October 22, 2024 3 min read

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UK Bankers Refusing Mortgages Due to Betting History, Report

Some applicants face mortgage rejections due to their soccer betting history, even when they can afford to place wagers

Millions of people in the UK have easy access to online sports betting and iGaming activities thanks to smartphones. While some consider the occasional bet as a hobby activity, such wagers may ultimately result in ineligibility for a mortgage, a newly released report warns.

Gambling History Makes It to the Lenders’ Scrutiny List

It is not uncommon for lenders to scrutinize applicants especially when it comes to getting a mortgage. There are a range of factors that contribute toward success or failure when applying for a mortgage and some of the most important ones are age, income, credit history, as well as payment history.

But as it turns out, lenders have put increased scrutiny on gambling-related transactions, even if that’s the case for applicants who occasionally place bets on soccer. Joe Childes, a mortgage advisor for Right Choice Mortgages, who was recently quoted by Sky News, spoke about the challenges some applicants face.

Concerningly, the expert revealed that lenders in some cases would reject an applicant’s request for a mortgage even if there is a history of occasional betting transactions. Childes explained that on some occasions, mortgage rejections were recorded even for customers who placed bets on soccer over the weekend. “The tolerance for gambling transactions seems to vary from lender to lender,” said the mortgage advisor.

We have seen cases declined where clients have separate accounts for placing bets, but even just those who bet on the football at the weekend.

Joe Childes, mortgage adviser at Right Choice Mortgages

Do Banks Have the Right to Dictate How Customers Spend Their Money?

Childes addressed the trend, questioning whether or not banks have the right to decline mortgages in cases where the applicant can afford to spend money on betting. The mortgage advisor asked: “If the client can afford the spending, is it right to dictate how they use their hard-earned money?”

Concerningly, banks see “habitual spending” as a red flag, regardless of the level of affordability and frequency displayed by the applicant. This creates a conflicting position, although cases vary from one applicant to the other.

Still, Childes asked if lenders could take the same measures for people who smoke or drink too much, for example. Extending that thought, he questioned how such measures can be enforced for people who place cash bets at betting venues.

The UK is currently going through an overhaul of its gambling regulations. Amid the implementation of changes to the sector that seeks to curb the rate of problem gambling and fight harm, the gambling regulator in the country, the Gambling Commission, announced the launch of the first comprehensive study of the black market. Afte the recent launch of the study, the first results are expected to be released at some point in the spring of 2025.

Journalist

Jerome is a welcome new addition to the Gambling News team, bringing years of journalistic experience within the iGaming sector. His interest in the industry begun after he graduated from college where he played in regular local poker tournaments which eventually lead to exposure towards the growing popularity of online poker and casino rooms. Jerome now puts all the knowledge he's accrued to fuel his passion for journalism, providing our team with the latest scoops online.

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