Mortgages and Klarna

poppie123 · 11 February 2024 at 1:27PM

Just some advice really.

Currently in the process of applying for a mortgage after having an offer accepted on a property, we are first time buyers, have a 15% deposit and both have an excellent credit score, no defaults, ccj's.

We have no debts, credit cards are always paid off in full but i have used Klarna, which is always paid in full. Usually pay in 30 days or pay in 3.

Now im worried that by using Klarna we will be declined a mortgage.
Has anyone had anything similiar? Or been approved for a mortgage having used Klarna.
To be honest i didn't give it a second thought until today and now feel sick.

ACG · 11 February 2024 at 2:04PM

I have come across klarna with some customers and never had an application declined.

I think it really depends, if you have 4-5 going out in the last 3-6 months it is probably one of those things worth checking before applying. I dont know if it is an issue, but its good that you have thought about it upfront.

It wont prevent you from getting a mortgage at normal rates, it might be a problem for some lenders - but I have not seen it being a problem.

poppie123 · 11 February 2024 at 2:16PM

On my credit report it shows 35 klarna payments all settled, paid in full.
It stretches back to December 2022.

Im absolutely terrified that the mortgage will get declined.

ACG · 11 February 2024 at 4:18PM

poppie123 said:

On my credit report it shows 35 klarna payments all settled, paid in full.
It stretches back to December 2022.

Im absolutely terrified that the mortgage will get declined.

I think you will be fine.
But I would also just check it beforehand, or use a broker.

It wont stop you getting a mortgage. At worst it might just be one where a couple of lenders say its maybe not for them. Dont worry, you will be fine with most lenders I reckon.

poppie123 · 11 February 2024 at 4:23PM

Thank you. Its with Nationwide so im keeping everything crossed.

jonnydeppiwish! · 12 February 2024 at 9:04PM

I’ve used Klarna a fair bit over the last 2 years, mainly because I could keep the cash in the saving pots gaining interest. Had a mortgage approved from Halifax last week so be negative affect that I’m aware of.