How Buying A Pizza Can Affect Your Mortgage Application

Klarna Blog Pic

First-time buyers, take note — ordering a pizza on credit could influence your mortgage chances. Here’s what you need to know.

In recent years, buy now, pay later (BNPL) providers such as Klarna have made it easier than ever to spread the cost of online shopping, from trainers to takeaways. For many, it feels like a harmless, flexible way to manage money. But if you're planning to get on the property ladder, it’s important to understand how Klarna, and other similar services, might affect your mortgage application.

What is Klarna and How Does It Work?

Klarna is one of several BNPL services that let you spread the cost of purchases over a few weeks or months — often interest-free. It’s incredibly convenient and widely available across online stores, so it’s no surprise many people use it for day-to-day shopping.

But when it comes to applying for a mortgage, what seems like a harmless financial habit could raise red flags with lenders.

How Klarna Could Impact Your Mortgage Application

When you apply for a mortgage, lenders look carefully at your income, expenses, and overall financial behaviour. While Klarna might not seem like “real credit,” lenders increasingly treat it as just that — and it’s now reported to the UK’s major credit reference agencies.

Here’s how Klarna could make a difference:

1. Affordability Assessments

Every mortgage lender performs a detailed affordability check. They look at your income, monthly spending, and every financial commitment, including Klarna. Even if you’ve borrowed just £15 for a takeaway, it could be seen as a sign that you’re relying on credit for daily expenses.

Klarna payments are treated as active credit, which can reduce the amount you’re able to borrow. While many Klarna plans are repaid within three months and may not hugely impact affordability, multiple agreements or frequent use can still raise concerns.

2. Your Credit Report

Klarna now shares data with credit reference agencies. If you miss a payment or use Klarna extensively, it could show up on your credit file — and that can negatively affect your credit score, which is a key part of any mortgage application.

3. Your Financial Habits

Heavy use of Klarna can raise a red flag for some lenders. It might suggest that you rely on credit for day-to-day spending — which could imply you’re over-stretching yourself or living beyond your means.

Top tip: If you’re preparing to apply for a mortgage, limit your Klarna use and make sure all BNPL payments are fully up to date.

Why I Ask to See Your Full Credit Report

One of the things I ask of all my clients is to see their full credit file. Unfortunately, there’s no such thing as a single credit report — or even a single credit score — for someone in the UK.

Lenders will usually assess your application using one of the three main credit reference agencies: Equifax, Experian or TransUnion. But not all of them retain the same information, and each has slightly different ways of calculating a score.

It’s complicated, and for many first-time buyers, it can feel daunting. That’s where I come in.

To make the process smoother — and to help place your mortgage application correctly the first time — I ask clients to provide their Checkmyfile report.

Why Checkmyfile?

Checkmyfile brings together your data from all three major credit reference agencies into one easy-to-read report. It shows you (and me) exactly what a lender might see when assessing your application. Using it means we can:

• Spot any mistakes on your file

• Understand how lenders might view your financial behaviour

• Take early steps to improve your credit before applying

  
  

All new customers can try Checkmyfile free for 30 days, and it’s £14.99 per month thereafter. You can cancel anytime, and return whenever you need to. 

👉 Click here to sign up

Make sure to sign up within seven days of clicking the link.

What First-Time Buyers Should Do Next

If you’re thinking about buying your first home and have used Klarna or other BNPL services, don’t panic. It doesn’t automatically disqualify you from getting a mortgage — but it is something we’ll want to look at together.

Here’s what I recommend:

✅ Download your Checkmyfile report

✅ Stop or limit Klarna use in the lead-up to applying

✅ Clear any outstanding BNPL debts

✅ Avoid taking out any new credit

✅ Book a chat with me to plan your next steps

Ready To Get Mortgage Ready?

At Optimus Mortgages, I work closely with first-time buyers to make sure they’re in the best possible position to succeed. From credit files to lender criteria and affordability, I help you take the guesswork out of the mortgage process.

Whether Klarna has been a one-off or a monthly habit, now’s the time to take control of your finances and get serious about home ownership.

📶 Book a free, no-obligation meeting here: Book a Meeting

📩 tim@optimusmortgages.co.uk

🌐 www.optimusmortgages.co.uk

Let’s get you mortgage-ready, and help you avoid letting a pizza stop you from getting the keys to your first home.