FTB, very small gambling transactions on statement..cause for concern?

Fitzkepp

Hi.

Long and short, having gained an AIP from nationwide and provided documentation, they've asked for a single bank statement from my wife and I each.

My issue is the last full statement for me has four transactions, amounting to less than 2% of our combined take-home pay (and just over 3% of my personal take-home), to Paddy Power and National Lottery.

A lads weekend with a few bets on the football, and a once-in-a-blue-moon punt on the Lottery. In hindsight daft, but early/mid April I simply didn't think I'd be buying a house this summer. The month itself saw my bank balance rise by £400 irrespective of this.

I'm hoping because these transactions are very low, and represent next to nothing of my take-home, it won't provide an issue - any views/advice?

(Background - 90% LTV application, FTB's, £20k deposit saved, no debt and both excellent credit scores)

amnblog

A potential problem for all borrowers in the new environment.

Affordability rules mean that lenders need to take a view on your discretionary spending.

This one does not sound to bad but a warning to others, we had a case last week that was declined due to the lender being uneasy about the 'gambling' spend.

Fitzkepp

Well, having spoke with my L&C broker he seems to think it won't cause any problems - as it doesn't represent a large part of my income and the account balance rose 20% in the month regardless (and not due to winnings!)

Horrible oversight on my part, but a symptom of the casual betting culture around football - at the time had I even been considering bidding on a property a couple of £10-£20 bets (summing to £60 with £15 on the lottery) wouldn't have registered as being damaging to my chances.

justcat

I was wondering if something like a regular lottery online purchase would cause an issue? Say a tenner a month?

Obviously, you can buy it in a shop and they would be none the wiser but it's useful to have it online where you can't lose it.

Any thoughts?

Fitzkepp

Well, as I say - my broker thinks not, but if by the end of the week I've had my application rejected it's another story!

ChopperST

As someone who likes a flutter I have always used a separate account for all gambling transactions away from my general household expenditure, will be interesting to see how the lender treats this on yours if you can keep us informed OP.

whakatane

I've said in a few different threads that I am awaiting a full decision at the moment after sailing through an AIP.

My transactions show a high proportion of my earnings go on gambling as I had a 2-3 month period where I had reached my deposit goal and wanted to live a little.

My deposit is 25% of the purchase price and my advisor said that he thinks my transactions will be overlooked because of the big deposit, and because my overall account management was fine (I wasn't betting on a credit card or using my overdraft)

I'm expecting to hear a decision any day but I am slightly concerned the longer it goes on.

Same as you I never in a million years thought I'd be buying a house this summer, I have been saving for a few years and just happened to see a house that suits me perfectly and went for it. Looking back my timing couldn't have been worse as march/april were the two months I went mad, so there'll be a fair few transactions on there.

mak12345

Hi All,


You may have seen my post regarding gambling - one transaction for £2k which I even transferred back into my current account was rejected by Leeds BS. The underwriter said he rejected it on affordability grounds as he had to factor in that I spent £2k per month on gambling. This was despite him seeing 12 months bank statements showing no gambling.


Our Broker has spoken with Nationwide and explained the situation and the senior underwriter said it would not be a problem for them. All they would be concerned about is if the account was going overdrawn etc etc.


Good luck

Thrugelmir

justcat wrote: »

I was wondering if something like a regular lottery online purchase would cause an issue? Say a tenner a month?

Obviously, you can buy it in a shop and they would be none the wiser but it's useful to have it online where you can't lose it.

Any thoughts?

Shouldn't be. If the spend is consistant and is no way excessive. As no worse than an expensive hobby, having a share of a racehorse etc.

Really needs to be put into context of the entire application as well i.e. income, debt, LTV applied for, is deposit gifted.

All the compenent parts build to make a profile of the applicant as a potential borrower.

Fitzkepp

Thrugelmir wrote: »

Shouldn't be. If the spend is consistant and is no way excessive. As no worse than an expensive hobby, having a share of a racehorse etc.

Really needs to be put into context of the entire application as well i.e. income, debt, LTV applied for, is deposit gifted.

All the compenent parts build to make a profile of the applicant as a potential borrower.

This is the thing, in the month in question the wife and I had a surplus of over £800 even after paying current rent etc - so £60 in that context isn't (for me) a big deal. Sure, it's £60 that could have gone towards deposit but no-one would bat an eyelid if it came out in cash and I'd drank it away on a friday night.

theEnd

I had a problem when applying to Chelsea BS. It was probably £3k/month for all the months they wanted to look at.

They said they counted it as regular spending, so wouldn't have been a problem if they could work out my income. They couldn't.

Went to a broker who got me another mortgage without any issues.