Date: 22.10.2024

by Sebastian Warowny

UK Lenders Increasingly Scrutinize Gambling Transactions in Mortgage Applications

The rising accessibility of online sports betting and iGaming in the UK is leading lenders to closely examine applicants’ gambling histories, potentially affecting their eligibility for mortgages, according to industry experts.

Gambling Activities Affecting Mortgage Eligibility

With millions in the UK participating in online betting through smartphones, financial institutions are adding gambling transactions to their list of scrutinized factors during mortgage assessments.

Traditionally, lenders evaluate age, income, credit history, and payment records, but a history of betting—even occasional—can now pose challenges for applicants.

Joe Childes, a mortgage advisor at Right Choice Mortgages, has observed this trend impacting clients. He noted that tolerance for gambling transactions varies among lenders.

“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,” Childes said.

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

Childes questioned the fairness of this scrutiny, especially when clients can afford their expenditures. “If the client can afford the spending, is it right to dictate how they use their hard-earned money?” he asked.

He compared gambling to other personal expenses like smoking or drinking, which typically do not face the same level of examination.

Financial institutions often view habitual spending patterns as potential risks, regardless of an applicant’s financial stability. Regular gambling transactions are seen as red flags, which can lead to mortgage applications being declined even when the individual has sufficient income and creditworthiness.

Amid these lending practices, the UK is undergoing significant changes in its gambling regulations to address problem gambling and related harms. The Gambling Commission has launched its first comprehensive study of the black market, with results expected in the spring of 2025.