Does Matched Betting Affect Mortgage Application
March 30, 2021
Match betting is a great financial opportunity for any punters. However, there have been horror stories of people getting denied their mortgage applications when they take the sports betting opportunity. Are the stories just hoaxes to keep you away from taking advantage of match bets? Let us answer that question by understanding the relationship between lenders and sportsbooks.
Lenders Are Not Fan of Betting
Match betting is a controversial subject for mortgages. Risk plays a large role for a lender to decide whether to approve a mortgage application or not. When you add gambling to the mix, that risk assessment will go beyond a comfortable level among most brokers. Those with regular income coming from gambling winnings are heavily looked down upon since they are determined to have an unstable source of monthly income. This is why professional gamblers have trouble with getting a mortgage.
To a bank or any financial institution, gambling is often associated with money loss. Mortgage lenders tend to think match betting is the same as betting half a month’s salary on the Knicks getting the championship in the next Playoffs. Fortunately, you will only encounter a handful of these financial professionals who equate all forms of gambling to the same thing.
Brokers have a better understanding that people want to use their disposable income on gambling as a means of entertainment. As long as it is a small portion of your monthly salary, any gambling payments are the same as a subscription to a streaming service or dining out. Always check with a mortgage broker for advice on the best place to apply for a mortgage while engaging in matched betting.
Matched Betting Means a Lot of Betting
Financial institutions are required to crunch the numbers regarding how likely you are in completing your mortgage. When they see a person spending much of their disposable income on casinos, lenders are likely to increase the interest rates for that person’s mortgage or deny their application.
How does matched betting affect a lender’s equation on your risk assessment if it involves using free bets? For certain brokers, they see it as an enabler to someone with gambling problems. Their belief comes from the notion that punters will start to bet with their income if they lose their free bets.
It is important to note that not all banks or lenders equate the use of match betting as a way to encourage people to gamble away a large portion of their take-home pay. Punters who are smart with the winnings they make from matched betting can continuously generate cash for a significantly long time. Those who were successful with their free bets were able to use their winnings in financing their house, to the approval of most lenders.
What financial institutions are wary of are transactions to exchange sites or sports betting establishments showing up on your bank statement consistently. You can avoid this by using a payment option that keeps your identity private such as cryptocurrencies.
Whilst responsible gamblers shouldn’t see a drop in their credit score, there is a risk that your mortgage application might require more reassurance to be successful if you gamble a lot of money over several months, without seeing much returns back.
Lenders Don’t See The Risk-Free Aspect
It is important to note that matched betting is a “risk-free” method of making a profit thanks to the free bets offered by online exchanges. This is a practice of setting a back bet such as putting money on Arsenal to win the Premier League and matching it with a lay bet like betting on Arsenal not winning the Premier League.
Matched betting is all about taking out the risk of your back bet by matching your bet against yourself with the same odds. This opportunity occurs when you receive a free bet upon placing your back bet with your deposited money. Regardless of whether Arsenal becomes the Premier League champion or not, you are still able to profit because of the back bet and lay bet.
Lenders are not familiar with match betting practices and they are likely to associate them with the usual forms of gambling. Look for firms or mortgage brokers who understand how you can profit out of the “risk-free” opportunity provided by your free bets to increase your chances of application approval.
Getting A Mortgage While Matched Betting
Lenders are already wary of people applying for a mortgage and are still active bettors. With that in mind, is it still possible to continue matched betting while applying for a mortgage? If done properly, it is possible to get a mortgage while matched betting.
If you are using your winnings from your matched betting practice for your mortgage, you need to come clean with the lender. Banks and mortgage brokers will need to know where you are getting the money for your mortgage. By being transparent with your earnings and explaining your methods, you increase the likelihood of getting your mortgage application approved.
Matched betting is a near zero-risk opportunity to get the funding for your mortgage. Check with a mortgage broker to know the right financial institution that can approve your mortgage loan while still profiting from matching your bets.