A rise in the use of ‘buy now, pay later’ schemes is significantly affecting the chances of securing a mortgage for a generation of young professionals, a UK mortgage broker has warned.
An analysis by Mojo Mortgages suggests around 22.6 million UK adults have used the deals – but the broker warns consistently incurring large or frequent ‘buy now, pay later’ debts can significantly impact mortgage applications and affordability checks.
“This isn’t just about credit scores, lenders are increasingly scrutinising bank statements for signs of financial stress or over-reliance on short-term credit,” the company said.
John Fraser-Tucker, head of mortgages at Mojo Mortgages, added:
“While BNPL is interest-free, lenders see it as debt exposure. When providers report your usage to credit agencies, missed payments hit your score hard, raising a red flag for banks who seek stability.”
Every ‘buy now, pay later’ commitment, whether outstanding or showing up as a regular payment on bank statements, reduces the amount a lender is willing to agree to, Fraser-Tucker explained.
“Lenders calculate affordability by taking your income and subtracting all monthly outgoings, and those ‘pay later’ payments are treated exactly like any other debt – they directly lower your maximum borrowing potential.
“You could effectively lose thousands from your mortgage offer, simply because of a few small, recurring monthly payments.”
Millennial and Gen Z cohorts are major user of the financing scheme, Mojo Mortgages said. With the average age of a first-time buyer in 2025 being 32 years and seven months, the broker urges young professionals entering “their first-time buyer era” to consider the impact of paying later on their ability to secure a home loan.
“For any prospective first-time buyer, if you can avoid accumulating multiple BNPL balances, do so,” Fraser-Tucker said.
“The short-term convenience of putting this year’s Christmas presents on there to deal with in a month or two simply isn’t worth risking your long-term dream of securing the best mortgage deal.”
