Can Matched Betting Impact Your Mortgage Application?
If you’re considering matched betting as a side hustle to save up for a house deposit, you might be wondering if it could affect your chances of getting a mortgage. The good news is that, as long as you approach it carefully and keep a few things in mind, matched betting should not have any negative impact on your mortgage approval.
Let’s delve into what mortgage lenders look for and discuss some tips on how to prepare for your mortgage application.
Are Matched Betting Profits Considered ‘Income’?
While matched betting profits are tax-free and yours to keep, they generally cannot be classified as income when applying for a mortgage. Mortgage lenders primarily assess your eligibility based on your regular salary or wage from employment.
However, you can certainly use your matched betting profits to contribute towards your house deposit without any issues.
What Do Mortgage Lenders Consider?
Mortgage lenders need assurance that you have the means to repay the loan over the agreed term. If they have doubts about your income level, your application may be declined.
Although matched betting is a risk-free activity, lenders are generally not interested in any form of betting. Gambling is viewed as high-risk, and they prefer to see a consistent income flow from a regular job.
How to Keep Matched Betting Separate? Different mortgage lenders follow various processes, but you should expect them to request three months of payslips and up to six months of bank statements.
My recommendation is to use a separate bank account exclusively for your matched betting activities. This approach, which I have personally used without any issues, allows you to provide statements from your main account, devoid of any betting activity, when applying for a mortgage. Moreover, keeping your matched betting separate will help you keep track of your funds.
If you prefer not to open a separate bank account, you can consider using an e-Wallet or prepaid card. However, keep in mind that some bookmakers may exclude these payment methods from promotions or involve additional fees. Be sure to review the terms and conditions.
What Other Options Exist?
While setting up a separate bank account is the ideal solution, there are a couple of alternatives if you prefer not to do so.
Your first option is to continue matched betting without making any deposits or withdrawals. Although not ideal, you can work with the funds already in your accounts. Topping up your exchange accounts when necessary should not pose any issues. Occasional odd transactions are generally acceptable.
The second option is to take a break from matched betting until after you’ve secured your mortgage approval. Matched betting is flexible and easy to resume later, so you can simply pick up where you left off.
Does Matched Betting Affect Your Credit Rating? If you’re concerned about matched betting negatively affecting your credit rating when applying for a loan or mortgage, rest assured that it won’t impact it.
Bookmakers are legally required to verify the age, location, and residential status of their customers. They usually perform a ‘soft credit check’ for this purpose, solely confirming your identity and ensuring you’re not engaging in money-laundering activities.
These checks are not related to credit lending and do not affect your credit score in any way.
Can Professional Gamblers Secure Mortgages?
Professional gamblers face some challenges when it comes to obtaining mortgages due to their fluctuating earnings. However, certain forms of professional gambling, such as poker, blackjack, and matched betting, are generally more accepted in the mortgage application process.
If professional gamblers can demonstrate a solid track record of consistent long-term profits, there’s no reason why they shouldn’t be able to secure a mortgage. It’s important to note that they may be subject to a higher interest rate, but for many, it’s a price worth paying. Additionally, if their financial situation allows, they may be able to offset the higher interest rate by making a larger deposit.
In conclusion, matched betting itself does not affect your mortgage eligibility and can actually be a great way to earn extra funds for your house deposit.
If you haven’t already done so, consider opening a separate bank account dedicated to your matched betting activities. This step will assist with your mortgage application and simplify your bankroll management.
If you have any questions or would like to share your mortgage experience, please feel free to leave a comment below.