BNPL vs. Mortgages: Your Interactive Guide
The rules for Buy Now, Pay Later have changed. This tool helps you understand the new landscape, see how lenders view BNPL use, and create a clear action plan for your clients to ensure they are mortgage-ready.
At a Glance: Key Changes
The regulatory shift effective June 10, 2025, is the most significant change. BNPL is no longer 'invisible debt'. It is now formally classified as a credit product, which has major implications for your clients' mortgage applications. This section provides a high-level overview of the most critical points you need to know.
- ✓Formal Credit: BNPL is now regulated 'low cost credit', requiring affordability checks.
- ✓Credit Score Impact: Defaults can be reported and will harm credit scores. Hard checks are now common for new accounts.
- ✓Lender Scrutiny: Lenders are analyzing bank statements for BNPL activity more closely than ever, seeing it as a key indicator of financial discipline.
Interactive: The Borrowing Power Impact
Use this interactive calculator to demonstrate to clients how even small, regular BNPL repayments reduce their overall borrowing capacity. Adjust the slider to see the real-time impact.