Matched betting and mortgages – what you need to know

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Matched betting and mortgages - what you need to know

Matched betting is a great way to boost your income, however one of the most common questions I get asked when it comes to matched betting is how it will affect any mortgage applications happening in the distance future. Many people are put off by matched betting because they are planning on applying for a mortgage within the next 2 years, but if you find yourself in this situation you don't need to worry! Here's what you need to know about matched betting and mortgages.

Matched betting and mortgages - what you need to know

It used to be that you could provide your last 3 months' worth of payslips when applying for a mortgage, but things have recently changed. Typically when you apply for a mortgage you will go through your current income and outgoings, with 3 months worth of bank statements to back this up. Every application is different, so this blog post is advisory only. 

What is matched betting?

Matched betting is a way to make some serious guaranteed profit by utilising the free bet offers that bookmakers offer. It has turned into one of my favourite side hustles because it is tax free and risk free! Even The Guardian have written about matched betting. People often ask me “if matched betting is so good, why isn’t everyone doing it?” – and I have addressed some of the popular questions in a blog post

Click here to join my matched betting Facebook group.

You can see all my previous matched betting income below. Please note that from January 2017 I have been focusing on growing my business with a provable income, with a lot less time to dedicate to matched betting:

Remember that month 3 also overlaps into October 2015 as I switched to reporting it per calendar month.

Matched betting income doesn't count towards your income for mortgage purposes

One great thing about matched betting is that the income you make is tax free. There is one drawback to this – your income from matched betting does not count as income for the purposes of getting a mortgage. You cannot declare your matched betting earnings as income, so you will have to ensure that your existing income is suitable enough.

Matched betting will not show up on your credit report*

*Kind of. Have you ever looking for car insurance on a comparison website? If you have checked your credit report afterwards, you might see some activity in the recent searches. This is exactly what some of the bookmakers do. Here's how it looks on my credit report with matched betting:

matched betting on credit report

As you can see, these are all anti-money laundering checks, and making sure I am who I say I am. These are not credit checks because you aren't applying for credit. Potential lenders won't see this information! This is known as a “soft search”.

A soft search is where a credit search is made on your credit file, but it doesn't affect your credit score. It is shown as a search, but lenders cannot see it so it doesn't affect their decision about whether to lend to you or not. You can have lots of soft searches as they don't affect your credit score.

You aren't getting credit with the bookmakers

Whether you are traditionally gambling, or you are matched betting, you aren't taking out credit with the bookmakers. You need to deposit your own money into bookmaker accounts and they don't offer a credit facility, which is why they don't need to perform any credit checks on you. It is only when you are applying for financial products with credit that you will have a full search carried out.

What about bank statements?

Your potential mortgage lender will usually want to see at least 3 months' worth of bank statements from you, sometimes up to 6 months. There is some debate as to whether frequent transactions with bookmakers on your bank account will hinder your mortgage application or not. Here's what I would suggest:

Regardless of whether you want to take out a mortgage or another financial product, you should be using a different bank account for matched betting. It helps you to keep track of your matched betting money and means that you are more likely to keep your matched betting money together in your pot. If you do need to apply for a mortgage, you can produce your main bank accounts – the ones where your income and outgoings are shown, excluding your matched betting activity. Banks are unlikely to ask to see any other bank accounts that show your matched betting related activity, but it has been known to happen.

Your mortgage application is a pretty big one, so if you are concerned about matched betting having an impact on your potential lender's decision then there are a few things that you can do. You could move all of your matched betting money into an online account such as Skrill. This means that transactions won't be appearing on your bank account, however some bookmaker offers aren't applicable if you use Skrill. You will need to check the terms and conditions for applicable offer.

You could load up your exchange and bookmaker accounts before you take a break – if you are lucky enough then you will have enough money in most of your accounts to keep you going!

Or finally, you could also take a 3 month gap from matched betting and come back to it once your application has been approved. Matched betting will always be there for you!

Using your matched betting income as a house deposit

Many people start matched betting so that they can save money towards a house deposit. It is a great way to boost your income however this is another area where different people have reported different things. Most commonly, people have been able to deposit a large amount of money from their extra bank account into their normal bank account, looking as though it has come from a savings account. If you are applying for a mortgage then it stands to reason that your income exceeds your outgoings, so it wouldn't look too strange to be transferring a lump sum that you have saved in order to cover the deposit.

On the flip side of this, some lenders have asked for proof of exactly where your deposit has come from, so this varies by lender.

If you have any questions or your own experience about matched betting and mortgages then I would love to hear about them! Please leave a comment below.

Matched betting and mortgages - what you need to know

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7 Comments on “Matched betting and mortgages – what you need to know”

  1. Would making the deposits via credit card be a way around this? (Obviously paying off the credit card swiftly) or would the credit card payments look suspect?

    1. Good question Dan! So the thing with credit cards (and I say this as my experience working for a credit card company back at university) is that they (well some) treat gambling transactions as a cash transaction, so there’s a fee, similar to if you withdrew money using a credit card at an ATM. This was certainly true for M&S bank’s credit card, I’m not sure on others

  2. Good post – deals with many questions that have been on my mind but not addressed in the usual matched betting sites/blogs.
    One thing: rather than having a Skrill account, how about running matched betting through a Paypal account. Would that trigger alarm bells on a credit check when applying for mortgage, or worry the bank (if I was trying to apply for mortgage through my main bank)?
    Thanks

    1. Hi Mark, the issue with using Paypal would be whether each offer allows Paypal as a deposit method. Sometimes they do, sometimes they don’t so you’d have to check each offer’s T&Cs.

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