Does Klarna, or any buy now pay later, affect a mortgage?
It can. Not because lenders disapprove of a pair of trainers in three instalments, but because buy now pay later is credit, it increasingly shows on your file, and it shows on your bank statements whether it is on your file or not.
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David Bourne
Where it shows up
On your credit file. Klarna has said that Pay in 3 and Pay in 30 purchases made in the UK from 1 June 2022 are reported to Experian and TransUnion, including payments made on time, late or not at all. Other providers have their own policies.
On your bank statements. Lenders read recent statements, and regular buy now pay later payments are easy to spot. An underwriter may ask what they are for and add them to your monthly commitments.
What has changed in 2026
The FCA started regulating interest-free buy now pay later, which it calls Deferred Payment Credit, on 15 July 2026, where the lender and the shop are different businesses. Agreements taken out before that date stay unregulated. For a mortgage application, the practical point is the same either way: it is borrowing, and a lender will treat it as borrowing.
What lenders tend to look at
Late or missed buy now pay later payments, which read like any other missed payment. How many plans are running at once, and how much is outstanding. And the pattern: using it for everyday spending can suggest money is tight, even if every payment is made on time. Each lender weighs this differently.
What I would do before applying
Clear or let finish any plans you can in the months before an application, and avoid starting new ones. Check your Experian and TransUnion reports for anything marked late. And if there is a missed payment on there, it is worth knowing how lenders read missed payments generally, because that is how it will be read.
The usual questions
Does Klarna show on my credit file?
Klarna has said that UK Pay in 3 and Pay in 30 purchases from 1 June 2022 are reported to Experian and TransUnion.
Will using buy now pay later stop me getting a mortgage?
Not on its own. Missed payments, a lot of plans at once, or heavy use for everyday spending are what make lenders cautious.
Should I close my account before applying?
Finishing or clearing plans before applying usually helps. Avoid starting new ones in the run-up.
Does talking to you affect my file?
No. There is no credit search to talk.
Leave your details and I will get back to you.
Plenty of people would rather not ring a stranger about their credit file, least of all at the end of a long day. Leave a number or an email and I will get in touch when it suits you.
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Small plans can add up on an application.
Bourne Financial Options Ltd is not affiliated with, endorsed by or acting on behalf of Klarna or any other firm named on this website. Firm names are used only to describe the situation a client may be in.
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Back to mortgages with adverse credit · The broker people ring after being declined
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