Heavy online gambling habit could prevent Irish banks from giving out a mortgage to new applicants.
Enjoying online gambling in Ireland may be fun, but according to the latest research such activity can prevent gamers from getting a mortgage. A report printed in the Sunday Independent suggests that bank or credit card statements featuring evidence of playing at online sportsbooks in Ireland, could lead to the bank refusing a loan.
Naturally, there are more reasons for a bank to “red flag” your application besides playing at a variety of destinations in full compliance with Irish gambling laws. Withdrawing cash from a credit card, regardless where it’s done, or revealing erratic spending habits, can all be the reasons for a mortgage application refusal.
Irish property market
The Irish property market is finally enjoying some sun and a period of recovery. Nine out of every 10 mortgage applications are now approved. This year alone could see as much as EUR 3 billion reach clients in new mortgages. Last year this figure was EUR 2.5 billion.
The clients have become more diligent as well, filling out their applications in a very scrupulous way. When the market was booming, banks were shelling out mortgage money for up to 110 percent of the purchase price, but now there’s a limit of 92 percent of the house price.
Professional help to mortgage takers
The obstacles in the way of first-time home buyers have led a large number of them to turn to professional advice. One of the best ways to seek for expert help on how to present the application to banks, can come from the Association of Expert Mortgage Advisers.
Online gambling could “red flag” mortgage applications
•Consistently betting at online sportsbooks in Ireland could lower chances of getting a loan
•Association of Expert Mortgage Advisers provides expert advise
•A lot of paperwork and decent amount of time is needed
Trevor Grant, the Association’s chairman, says there could be a number of reasons a bank may refuse an application. Since lenders are studying applicant’s financial history very closely, online gambling transactions, ban be one of the “red flags”. Fortunately, occasional gambling spending will probably not be considered a habit, and thus will play little role in application approval.
The expert also advises borrowers to be prepared for a wide range of documents needed for today’s applications. Taking into consideration the time it might be needed to collect a big heap of paper, it’s advisable to start early not to lose a chance on one’s dream house.
British gambling news quoted Trevor Grant saying: “The mortgages currently being applied for are more affordable and are based on disposable incomes and loan amounts. This combined with the caliber of mortgage seekers – particularly first-time buyers – in terms of earnings, employment and savings record makes them very attractive to lenders.”
According to the Association chairman, the first quarter of 2014 could see as many as 3,000 applications compared to only 2,068 for the same period of 2013. He opines: “That would mean the number of mortgages for 2014 should be up 20 per cent on 2013, from 14,985 to about 18,000. In value terms that’s about €3bn in cheques issued by the banks for home loans for the full year.”
Another reason boosting the number of mortgages is the reduction in the 5-year credit squeeze. It allows applicants, who hold secure employment positions and can show repayment capacity with a strong credit history, have a much higher chance of successfully receiving a loan.
However, Trevor Grant has warned potential mortgage applicants that they must be fully prepared. He commented: “Some borrowers are not prepared from a documentation perspective to apply for a mortgage. In most instances you need to prepare at least three months in advance of applying so you can ensure your paperwork is in order and that you will receive the mortgage approval you require.”
It is also advisable to show off wise management of financial affairs and sensible account activity. And of course, one of the main points is to demonstrate to the bank, that mortgage applicants are able to afford the mortgage payments, and prove this with a proper set of documents.
Online gambling habits can serve as a hindering reason for mortgage application, but only if taken to extremes. Sensible gambling will not be regarded as a problem and thus will have little or no effect on the application.