Mortgages

[LinusP]

Evening,

Does anyone have experience in using money from betfair for a deposit?

I am now using only accounts through PayPal and there should be around 12 months since I had a 'betting' transaction on a bank statement. However I am wondering if I should be doing something, as I am sure the broker is going to ask questions.

Any advice welcomed.

[Dallas]

Are you going for a residential or BTL mortgage?

[LeTiss]

I've heard from someone else that the Banks refuse to lend to someone with betting transactions on their statements. It's a bloody disgrace when you consider how the banks themselves gamble with our money all the time!

I hate banks, and I hate bankers - the word CNUT was invented for bankers

[LinusP]

First time buyer, standard mortgage.

+1 LeTess

[Dallas]

The main thing there intrested in with deposits are ensureing that its legitimate money belonging to you (not drug money, proceeds of a robbery or paid into your bank last week by a very kind grandma). So a build up of money transfered from paypal over time should be perfectly fine. Had it shown BF on your statement they may of been more dubious and questioned it further although it still should nt stop you.

What there mostly intrested in for residential mortgages is a verifiable income source (3 yrs+ if putting down as self employeed) and your overall credit worthiness - there will be a lot more checks into that than your deposit source.

[spreadbetting]

The lenders will rarely look into where your deposit has come from unless they suspect something dodgy going on. If the money is already in a bank account the bank will have done the money laundering checks it's required to anyway so they won't feel any need to repeat or do them themselves.

Obviously if you're relying on them taking into account any Betfair income to pay the mortgage it's a completely different kettle of fish.

[LinusP]

Currently in full time employment so don't need to worry about that, tempted to buy premium bonds with the money to get another 'layer' between.

[LeTiss]

I remember Peter Webb posting a video 3 or 4 months ago about Lloyds Bank. He had been with them for 30 years, and had his business with them for 15 years, but they recently refused his application for a new account, due to connections with gambling!

[vankancisco]

It's easy to react to decisions made by banks with emotion - but don't take it personally!

I know if I was weighing up financial risk, it wouldn't fill me with confidence if the applicant had gambling activity on their bank statement. And of course, gambling is used as a common way to launder money.

[kerberus]

The video is called :-
Booted out by bankers - Why you should dump Lloyds Bank now ...
https://www.youtube.com/watch?v=yDNYuusuEdA
And Peter does seem to take it rather personally.
A certain Mr Webb has also been banned by bookmakers and seems to have some dodgy dealings on the mexican frontier.
You should watch the betangel.tv videos between races - they provide light entertainment on dull days.
On a serious note the chcking system works both ways. I'm trying to put money IN via a pension fund (thankyou Mr Osborne! ) and the illegitemate SOB's double check where the money is coming from. You have to convince them you are not a lying cheating thieving, backstabbing banker or politician. Just tell 'em you are an honest bankrobber!

[ShaunWhite]

From the start you need to establish a 'front', like you would with any ify income.
Something like your missus having an IT consultancy ... they you become the main client and voila, the company has a valid income. She then employs you as a consultant (to shed some more expenses and get more allowances) etc etc etc. Sure, you might need to worry about tax, but seeing as profits from 'gambling' are tax and NI exempt, it's only proper some tax gets paid somewhere down the line. You can't be a tax avoider and expect to live in a country with decent fire/police/schools/nhs etc.

[ShaunWhite]

It's a bloody disgrace when you consider how the banks themselves gamble with our money all the time!

I hate banks, and I hate bankers - the word CNUT was invented for bankers

But you like free banking and expect your pension to grow faster than inflation....who does all that then?

Banks can't do that if your £20 is just sat in a bank vault. Growing money requires calculated risk, jeez that's what trading is all about so you'd think people here of all places would get that.

Hating 'bankers' (even though no such job actually exists) is easier that thinking about what they actually do. 2 or 3 banking glitches in over 100yrs of steady returns, it's a good record. Also, if customers didn't expect the earth, banks wouldn't be so inclined to 'gamble', to make enough money, to offer the returns, that top Martin Lewis's top deals list.

So, banker haters, how should your pension money be invested to make 6% a year? My 'bankers' have made me an avg of 11%pa for the last 30yrs on my pension savings, you won't find me complaining if they have a bad patch.

[LinusP]

From the start you need to establish a 'front', like you would with any ify income.
Something like your missus having an IT consultancy ... they you become the main client and voila, the company has a valid income. She then employs you as a consultant (to shed some more expenses and get more allowances) etc etc etc. Sure, you might need to worry about tax, but seeing as profits from 'gambling' are tax and NI exempt, it's only proper some tax gets paid somewhere down the line. You can't be a tax avoider and expect to live in a country with decent fire/police/schools/nhs etc.

You have just described a form of money laundering, although in this case probably not technically illegal its going to raise all sorts of transaction monitoring alerts at the bank you decide to do this with.

[ShaunWhite]

From the start you need to establish a 'front', like you would with any ify income.
Something like your missus having an IT consultancy ... they you become the main client and voila, the company has a valid income. She then employs you as a consultant (to shed some more expenses and get more allowances) etc etc etc. Sure, you might need to worry about tax, but seeing as profits from 'gambling' are tax and NI exempt, it's only proper some tax gets paid somewhere down the line. You can't be a tax avoider and expect to live in a country with decent fire/police/schools/nhs etc.

You have just described a form of money laundering, although in this case probably not technically illegal its going to raise all sorts of transaction monitoring alerts at the bank you decide to do this with.

It's not illegal or laundering. Gambling income isn't illegally gained. It's not even like you're trying to avoid tax from a cash-in-hand business.
If you do all your banking at one bank then it might look interesting but that would be a pretty foolish thing to do. There's plenty of 'non-banks' around these days so your income account won't even show on any credit checks.

The easy and 'legit' answer to the mortgage issue is to just get one from a European lender, many EU countries permit self-cert mortgages and customer protection regs are good in most countries but would need to be researched, and you can hedge against currency exposure.
BUT I suspect brexit will have screwed up that option.

There are specialist lenders you can deal with, but they aren't cheap. They're still cheaper than a mortgage for your average self-employed or PAYE Joe though because you've not paid any income tax on the money you're paying your mortgage with. 'Joe' has got to gross over a grand to pay his £600 mortgage.

[EyePeaSea]

From the start you need to establish a 'front', like you would with any ify income.
Something like your missus having an IT consultancy ... they you become the main client and voila, the company has a valid income. She then employs you as a consultant (to shed some more expenses and get more allowances) etc etc etc. Sure, you might need to worry about tax, but seeing as profits from 'gambling' are tax and NI exempt, it's only proper some tax gets paid somewhere down the line. You can't be a tax avoider and expect to live in a country with decent fire/police/schools/nhs etc.

You have just described a form of money laundering, although in this case probably not technically illegal its going to raise all sorts of transaction monitoring alerts at the bank you decide to do this with.

Absolutely not. But almost. The key difference is whether the source of the income is illegal or not. Shaun just outlined an approach to have the money come through a more recognised source, as opposed to "Oh that cash? I won 15k on the 3:15 at Cheltenham". Money is money, but by masking it like that, you remove the negative perception for people making judgements on credit worthiness.

I've been a contractor for 15 years - back then, it was very difficult to get banks to understand/accept money from Dividends rather than a P60. Who knows - in 15 years time, personal gambling may be more accepted. Also Shaun did include the fact that his suggestion would actually increase the tax take by HMRC - and it's hard to criticise someone who manages their affairs to avoid negative preconceptions/ignorance by banks *and* at the same time, contributes more to the state.