Is there any way to get a mortgage with poker winnings? (UK)

I thought you could set up a limited company and put winnings through there. You may have to pay tax but this could be worth it to get a mortgage?

Anyone have any suggestions?

Thanks

If you do poker for a living I'm not sure if the banks will allow a mortgage even if you have a nice deposit to put down. As we live in the UK poker is considered gambling and not a profession as we don't pay tax on the winnings. However even a LTD company might not be enough as It surely has to have proven income to sustain a mortgage?

you have better odds of taking that deposit and going to vegas and playing the main event and winning it. then you can buy houses cash.

Recently retired UK mortgage broker checking in...

No easy way to do this and your ltd company option is just not worth it, unless you have other income streams.

Online winnings are legit money, so they would be perfectly acceptable for a deposit, provided you have proof of provenance. Live again...legit, but you'll need to provide some evidence.

If you start putting poker winnings through a limited company as an income stream, you will attract corporation tax, which would be barking mad, as winnings are tax-free in the UK (and will remain so unless an Act of Parliment alters this as it has been verified by case law in the 1920's).

Moreover, getting a mortgage in the UK through a business still requires you to go through all the post MMR affordability checks so you will still have to prove your taxable income. usually though your SA302 and/or Tax Summary.

Best bet...get yourself a supplementary job for a while. Use your poker winnings for a substantial (50% plus) deposit and beef up your income affordability with a regular job.

Can't speak for UK but virtually impossible in the US. No regular source of income...

In the US you can use taxes as proof of income.

I imagine a mortgage is more difficult to secure, but I was able to secure a $1400/month rent apartment in South Florida without any proof of income. I think my high credit score helped.

Renting an apartment and getting a lender to sell you a house are very different animals. You're definitely not gonna get one of the normal types of lenders on board. They don't need the hassle of someone with a weird self-employment income like poker. Regular self-employment is hard enough.

In the US, you have the 'Land Contract' option, which is basically 100% Seller financing. These transactions are done all the time, but you need to have a willing Owner of course.

I would assume that property taxes and insurance would be included in the terms of the contract. There are regulations surrounding the interest rate that can be charged on a land contract as well, so although you probably would pay a higher rate, they can't charge you a 'crazy' rate. Don't do a land contract and 'not' register it with the county/government .. not a good idea if things go bad.

I knew a guy who owned a bar and 'sold' it three times on land contract. He got it back all three times. So he basically received monthly payments to live off of and got full equity in business back when the Buyers backed out or couldn't make the payments.

If you can find a willing Seller, this may be an option since the only 'approval' you need is the Seller's. GL

PS .. The 'company employee' option is one I've thought through, but it opens the door up to double taxation (or more) as well as other things. But on the other side, you could operate as a staking business and just stake yourself!

Just remember that when you typically take money out of a business it's via wages or a draw/dividend of some sort, both of which are personally taxed. So unless you want your 'business' to own your house, car and everything else you want to buy, then it's really not a consideration. GL

I seriously doubt your chances of finding someone willing to do this with their principal residence. If someone is selling the place they live, they usually need the money right away, not over time; hence the reason bank financed mortgages exist. Even the people who don't need it are going to prefer to sell to the person who pays them the whole thing immediately because they got financing from a bank (or other third party).




That said, I am not as doom and gloom as previous posters about your chances of getting a mortgage with poker income. It is not a great situation sure. If you have 7 years of tax returns showing $100K+ of income from it and you'll put down 30% as a down payment and you'll take a higher than normal interest rate, I would think you could get something. Obviously, all of this is worse than would be expected for someone with a traditional job making the same amount. (And I pulled all the numbers out of my ass.)

Op specified UK. This won't work in the UK (not for gambling winnings - I guarantee).

Hmmm, given UK doesn't tax poker winnings, that does seem tough. Maybe if you offered to drastically increase the amount you put down? Have to put down 50%? Show bank statements in and out to prove you make money?

Not as easy I guess.

Cheers all.

Think i best just use poker winnings for a deposit.

I have a normal job anyway so ill just get a mortgage from that.

Typically it's not a 'current' principal residence that's being sold, but it does happen. Normally it's a rental that they don't want to mess with anymore or just acquired via an estate. Lots of homes bought off the Repo market are flipped via Land Contract.

It's not as prevalent in today's low interest world for sure, but it's also one of those things that you don't run across unless you need one. A call into the county court house will tell you in a hurry how often they see one .. if they are receptive to your call, a visit may work better. GL

Yea, a rental property or a deceased parent's house would be more possible. Certainly less preferable for the Seller, and as you say probably not too likely given current interest rates.