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

Using buy now, pay later (BNPL) services could be affecting your ability to secure a mortgage, brokers have warned.

Mortgage Rejections Despite Perfect Credit

Brokers revealed in an exclusive survey with the Money blog that borrowers with a "perfect credit score" and a few BNPL transactions have still been declined mortgages. Multiple brokers confirmed that regular use of BNPL was a factor in rejections by major high street lenders.

Call for Changes in Lenders’ Assessment

Brokers are urging lenders to revise how they evaluate potential borrowers who have BNPL payments recorded on their credit reports.

BNPL Companies Respond

Two of the largest BNPL providers responded to these concerns by defending their services as innovative and suggested that the rest of the financial industry needs to catch up.

Understanding BNPL and Lender Reporting

BNPL schemes let customers break down payments on purchases without interest. They are popular among nearly 11 million Britons, according to the Financial Conduct Authority.

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Author’s summary: Increasing use of buy now, pay later services may harm mortgage approval chances even for those with perfect credit, prompting calls for lenders to adjust their evaluation methods.

Sky News — 2025-11-04