Broker Mojo Mortgages, part of Zoopla, says the proliferation of Buy Now, Pay Later (BNPL) payment options could jeopardise individuals’ home ownership plans.

Research by TSB shows that 56% of consumers use credit for Christmas purchases, with BNPL spending increasing by nearly 80% compared to previous weeks. 

John Fraser-Tucker, head of mortgages at Mojo, says: “While BNPL can feel like a helpful tool during the holiday rush, these small commitments can escalate into larger financial challenges. If you’re hoping to buy a home in 2025, now is the time to be cautious.”

Mojo claims some 89% of the top 100 trending presents can be purchased through BNPL methods. And 75% of these products actively promote BNPL options on their product pages, enticing shoppers to use the credit method. 

It also claims that a typical shopper could accumulate between £772.56 and £1,287.60 in BNPL commitments this season.

To make matters worse, 48% of BNPL users have missed at least one payment, with 47% incurring extra fees. 

Fraser-Tucker explains, “Missing a BNPL payment isn’t just bad news for your bank account—it can mess with your debt-to-income ratio and overall creditworthiness, two things mortgage lenders assess when you’re applying for a mortgage.

“However, even timely payments can raise red flags. 

“Lenders are wary of multiple credit commitments. They may see it as a sign you’re stretching yourself thin financially, potentially affecting your ability to keep up with mortgage payments.

“Whilst BNPL isn’t a new concern for lenders, the market is expected to grow to £40 billion by 2026 – accounting for 10% of all e-commerce spending. Due to this rapid growth, we’re witnessing more lenders incorporate detailed BNPL checks into their standard underwriting processes. As this market expands, expect these assessments to become even more thorough.”