Gambling overdraft debt cleared, but will it affect mortgage application?

[Deleted User]

EssexJay said:

I like you was using my max overdraft along with about 6k in credit card use during the pandemic just to try and cover the bare essentials.

living in London with crazy high rents didn’t help this situation. But in March this year I recieved a long awaited inheritance and paid it all back. I had my mortgage offer in may once my credit file had updated and Halifax saw no defaults or missed payments as I made sure to always pay at least the minimum. 

As long as there are no defaults or negative events like ccj’s, bankruptcy or missed payments all they are looking for is a clear file. I make sure to check my Experian file at least once a week now just to make sure I’m still in a good place, even though I know it’s all fine now.

Don’t worry yourself about something that hasn’t happened yet, speak to your broker and show him your credit report, he will be able to put your mind at ease.

Thanks for sharing. We didn’t have any problems with agreement in principle so just wondering if any big red flags would have shown in a soft search? (I always thought soft search was basically for checking you are who you are and your existing credit accounts? Hard search = everything you’ve ever used or spent or paid?)

My credit score is really good now, we can afford the repayments and then some, and we’re both on a decent wage with no dependents. No repayments anywhere now.

Does hard credit check happen during interview, or after we fill out application form?

macman

Your credit score is a fictitious number that lenders don't even see. Ignore it.
As I pointed out before, what they look at is your history. 

Brie

I would think that a large portion of people applying for mortgages have used their overdraft at some point.  What would be worrying is if it went on for years and was still an issue. 

As far as I'm aware anyone looking at your credit record (should they be wanting to do so) would simply see perhaps overdraft, perhaps how much but not why and who you were paying money to unless the mortgage is being provided by the bank that gave you the overdraft.  And even that may not be a problem as you are no longer gambling. 

Well done for being honest.  And well done on your recovery.  

london21

Keep positive a mortgage broker will be able to assist you.

Provide all the required information and documents honestly, they will have experience of such. 

[Deleted User]

Thanks everyone. I think I paid every month so no defaults anywhere.

The PayPal credit account I set up at this time mysteriously has “no info” but statements say minimum payment due was £0 for first two months so assume this isn’t flagged as a missed payment? 

Really glad I posted here, but I’m so anxious about the interview. I’m hoping that the minimum payments and no defaults means everything will be fine. A lot of my behaviour is difficult for me to even understand (I was in such a bad place) let alone explain.

The lender we’ve chosen is for a big bank, so quietly accepted that if they turn us down we’ll miss out on our dream house, and if we find another house we’ll go with a broker.

themainman84

The only way they would know about the gambling would be by looking at your bank statements. Lenders usually ask for the last 6 months bank statements to review. If these are clear then you should have no issues. As the others have said, it's more about missed payments/defaults. These would usually be picked up at AIP stage anyway but do ensure you declare everything to your broker. Good luck

artyboy

themainman84 said:

The only way they would know about the gambling would be by looking at your bank statements. Lenders usually ask for the last 6 months bank statements to review. If these are clear then you should have no issues. As the others have said, it's more about missed payments/defaults. These would usually be picked up at AIP stage anyway but do ensure you declare everything to your broker. Good luck

This! Your credit file won't have any direct footprint of gambling activity - and if the worst that's in there is some overdraft utilisation - during a period when many people needed that extra buffer - then I'd say you don't need to worry about being rejected on the basis of your past behaviour. It's then just down to how far back on your bank statement was the last gambling transaction? And of course if it wasn't your 'main' bank account that you used, even better.

As someone that has had some close experience of the effects of this particular and very relentless compulsion, I'd just like to say well done to the OP for confronting it. I do hope they have the right ongoing support network in place for the next time temptation arises (which sadly it is bound to, that's the nature of gambling...).

[Deleted User]

artyboy said:

themainman84 said:

The only way they would know about the gambling would be by looking at your bank statements. Lenders usually ask for the last 6 months bank statements to review. If these are clear then you should have no issues. As the others have said, it's more about missed payments/defaults. These would usually be picked up at AIP stage anyway but do ensure you declare everything to your broker. Good luck

This! Your credit file won't have any direct footprint of gambling activity - and if the worst that's in there is some overdraft utilisation - during a period when many people needed that extra buffer - then I'd say you don't need to worry about being rejected on the basis of your past behaviour. It's then just down to how far back on your bank statement was the last gambling transaction? And of course if it wasn't your 'main' bank account that you used, even better.

As someone that has had some close experience of the effects of this particular and very relentless compulsion, I'd just like to say well done to the OP for confronting it. I do hope they have the right ongoing support network in place for the next time temptation arises (which sadly it is bound to, that's the nature of gambling...).

Thanks. It was over two years ago and I stopped dead after 6 weeks. Gamstop totally removed the ability and really helped. Just want to move on. Do banks ask 'do you gamble' in mortgage applications? Or do they ask 'have you ever gambled'? We're not using a broker so we've just got this one chance to get it right for this house. I don't gamble, but concerned that saying I did for a little bit two years ago might ruin it all.

Slinky

From what the OP is saying, the interview on Saturday is with the lender, not a broker. Is the advice still to bring it up at interview?

artyboy

[Deleted User] said:

artyboy said:

themainman84 said:

The only way they would know about the gambling would be by looking at your bank statements. Lenders usually ask for the last 6 months bank statements to review. If these are clear then you should have no issues. As the others have said, it's more about missed payments/defaults. These would usually be picked up at AIP stage anyway but do ensure you declare everything to your broker. Good luck

This! Your credit file won't have any direct footprint of gambling activity - and if the worst that's in there is some overdraft utilisation - during a period when many people needed that extra buffer - then I'd say you don't need to worry about being rejected on the basis of your past behaviour. It's then just down to how far back on your bank statement was the last gambling transaction? And of course if it wasn't your 'main' bank account that you used, even better.

As someone that has had some close experience of the effects of this particular and very relentless compulsion, I'd just like to say well done to the OP for confronting it. I do hope they have the right ongoing support network in place for the next time temptation arises (which sadly it is bound to, that's the nature of gambling...).

Thanks. It was over two years ago and I stopped dead after 6 weeks. Gamstop totally removed the ability and really helped. Just want to move on. Do banks ask 'do you gamble' in mortgage applications? Or do they ask 'have you ever gambled'? We're not using a broker so we've just got this one chance to get it right for this house. I don't gamble, but concerned that saying I did for a little bit two years ago might ruin it all.

Wish I could answer your question - but haven't had a mortgage for a while now and the last time I applied, it was in a period where banks would have lent to me if I was a self employed drug dealer on benefits... 

I certainly hope though that nothing that intrusive ever gets asked - and if I were in that position, I'd be thinking 'how would they ever know anyway'

Best of luck.