Is your buy now, pay later habit denting your mortgage chances?

Is Your Buy Now, Pay Later Habit Affecting Your Mortgage Chances?

Mortgage brokers have warned that using buy now, pay later (BNPL) services could reduce your chances of getting a mortgage. Even borrowers with a "perfect credit score" and only a few BNPL transactions have reportedly been declined by lenders.

Impact of BNPL on Mortgage Approvals

Several brokers shared in an exclusive Money blog survey that a client's regular use of BNPL was a factor in mortgage rejections by high street lenders. They urged lenders to reconsider how they assess prospective borrowers who have BNPL payments recorded on their credit files.

Industry Response from BNPL Providers

In reaction to these findings, two leading BNPL companies defended their services as innovative and suggested that the wider financial industry needs to adapt to these new payment models.

Understanding BNPL and Lender Data Access

BNPL schemes allow customers to split payments into interest-free installments. According to the Financial Conduct Authority, nearly 11 million people in the UK use these services. Lenders access BNPL usage data when evaluating creditworthiness.

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"Borrowers with a \"perfect credit score\" and a \"few\" buy now, pay later transactions have been declined mortgages."
"Several brokers told us a client's regular use of BNPL services was a factor in their rejection by a high street lender."
"Two of the biggest BNPL companies hit back, saying they provided innovative services and the rest of the financial industry should catch up."

Author's summary: Regular use of buy now, pay later services may harm mortgage approval chances, prompting calls for lenders to update their assessment criteria.

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Sky News Sky News — 2025-11-04

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