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Buy Now Pay Later (BNPL).

ended 09. June 2026

From 15 July, Buy Now Pay Later (BNPL) borrowers will benefit from stronger protections, following the Government's decision to bring the sector under the FCA's regulation.

As part of the changes, consumers will get clear, upfront details about their agreement, including when payments will be due, amounts, and what happens if they miss a payment.

Meanwhile, lenders will be required to carry out proportionate affordability checks to make sure customers can afford to repay what they borrow before offering BNPL.

A few Qs: 

  • How do mortgage lenders currently view BNPL usage (especially if extreme)?
  • Will this new regulation make lenders see BNPL as less “high risk” and more someone entering into a (strategic) credit agreement eyes wide open? In other words, might regular BNPL usage make lenders see borrowers as a safer bet if they consistently meet their repayments? Or do you think usage will hinder borrowers? 
  • What's your general take on the impact of the regulation in relation to borrowers?

Any thoughts, send them across.

6 responses from the Newspage community

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Darani Ganesharajah
Mortgage Broker at Springtide Capital
Buy Now, Pay Later products are extremely common nowadays and can have a significant impact on affordability assessments. One of the biggest challenges we see is that many clients do not view BNPL as a traditional credit commitment, particularly as the individual amounts are often relatively small. As a result, borrowers will sometimes forget to disclose them or simply not consider them relevant when discussing their finances. This can create issues later in the mortgage process when lenders identify the commitments through bank statements or credit checks. In some cases, it can lead to reduced borrowing capacity, declined Decisions in Principle, additional credit searches, requests for further documentation and delays to applications. From my perspective, greater regulation and transparency are likely to be positive. If consumers begin to view BNPL as a form of borrowing rather than simply a payment method, they may be more selective in how they use it. That should make affordability
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Nouran Moustafa
Practice Principal & IFA at Roxton Wealth
Mortgage lenders don't usually treat BNPL as automatically bad, but they do look at the pattern. Occasional BNPL use that is repaid on time is very different from someone constantly splitting small everyday purchases because cash flow is tight. Regulation should make BNPL cleaner and more transparent, but it won't suddenly turn heavy usage into a positive credit signal. A lender is still going to ask: does this borrower rely on short-term credit to get through the month? Used sensibly, BNPL may become less suspicious because affordability checks and clearer terms should reduce some of the old 'hidden debt' problem. But extreme or frequent use can still hurt affordability, especially if payments are visible on bank statements or credit files. My view is simple: regulation is good for consumers, but borrowers should not confuse regulated with harmless. Before applying for a mortgage, BNPL should be controlled, explained and ideally reduced.
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Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
Some lenders look at BNPL loans like they used to paylay lending. If you have lots of BNPL on your bank statements some lenders won't even look at providing credit. Without doubt, the new regime will make consumers more aware of what they are doing and the implications they could have on their credit score and payment history.
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Harry Goodliffe
Director at HTG Mortgages
The issue has never really been Buy Now Pay Later itself; it's how it's used. Mortgage lenders are more concerned about patterns of borrowing than the product itself. Someone occasionally spreading the cost of a purchase is very different from someone relying on BNPL for everyday spending. The new regulation should improve consumer protections and could reduce some of the stigma around these products. Still, borrowers should not assume that frequent BNPL use will strengthen a mortgage application.
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Thomas Boughton
Founder at Artillium Real Estate Finance
Changes to BNPL regulation are long overdue. Consumers have increasingly been entering into largely unregulated, instant credit agreements without fully understanding the risks or long-term financial impact.

From a mortgage underwriting perspective, lenders take a strict view of BNPL usage. Even when payments are maintained, BNPL commitments can indicate higher risk and impact affordability.

From an advisory standpoint, we advise against any BNPL usage. It is often used for discretionary purchases such as clothing or footwear and frequent use can be a red flag in mortgage assessments. From a lenders point of view, if you have to finance a pair of shoes, it probably isn't the right time to look at mortgage options and that is the reality.

Where short-term credit is required, traditional products such as credit cards that are managed and repaid in full monthly are generally viewed more favourably by lenders and are better at building a reliable credit history.
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Saqhib Ali
CEO at ZeroPA
The new BNPL regulations for Buy Now Pay Later (Deferred Payment Credit) come in on July 15th.
ZeroPA a social-impact micro-finance non-cash interest-free lender was the first under the Temporary Permissions Regime.
These new protections will offer consumers greater protection by ensuring any credit extended is affordable and can include checking Credit Reference Agencies and feeding back payment behaviours.
Additionally following the explosion in the take up of BNPL especially by the 18-34 age demographic it is important all existing debts are taken into consideration before new credit is extended.
Unfortunately many have been caught by a BNPL fast credit trap spending £00s in a shopping spree with no increase in income to covering this over 3 or 4 payments.
ZeroPA offers funding towards essentials only like food, utilities, clothing, white goods, furniture, household repairs, and basic tech like a tablet to enable digital inclusion. We pay retailers and suppliers directly.