PayPal Pay in 3 - Mortgage Application

J0193

Hi. New member here! 

I'm going to be applying for a mortgage in the next couple of months and I was wondering - now that PayPal Pay in 3 reports to credit reference agencies - if using this service would be a detriment to my application?

I'm aware that services such as Klarna and ClearPay are a no-go when it comes to preparing for the mortgage process, but I was wondering if PayPal Pay in 3 would be considered the same and classed as BNPL (Buy now pay later).

Thank you in advance. 

CliveOfIndia

It's something of a double-edged sword.  On the one hand, it's simply another line of credit, just like any other.  If you make all payments as agreed, on time, then this will reflect positively on your credit history.  However, the amount outstanding will also be factored into the lender's affordability calculations (as it's a debt that you owe).

The main thing is to not take out any new lines of credit in between getting your agreement in principle and completion.  The AIP will be based on your existing debt levels, and most lenders will run a second check just prior to completion.  If your initial AIP was borderline, then taking out further credit in the interim may just push you over the limit and they may possibly pull your offer at the last minute.

J0193

Thank you very much. This has been both insightful and helpful