Five shopping habits that could kill your mortgage application

If you’re saving for a house, here’s something that might surprise you: your shopping habits could cost you a mortgage. According to mortgage experts, everyday financial decisions you make now could trigger an instant rejection when you apply to borrow.

The main culprit? Buy-now-pay-later schemes. Two thirds of British households (70%) now use these services, often because of the cost of living crisis. But lenders see them differently. When you use buy-now-pay-later, it shows up on your credit report. If you’re using these schemes regularly, lenders worry you can’t afford basics upfront — a sign you might struggle with monthly mortgage payments. That’s often enough for an instant “no”.

George Abouzolof, Senior Mortgage Advisor at Clifton Private Finance, revealed several other financial red flags that can sink your application just as quickly.

Frequent gambling is one. The occasional flutter on the Grand National probably won’t hurt, but regular betting or large sums signal reckless spending to lenders.

Splashing out on luxury items matters too. If you’re constantly buying expensive things without the income to back it up, lenders see someone drowning in debt, not a safe bet for a mortgage.

Taking out new credit cards shortly before you apply is surprisingly damaging. It suggests you don’t earn enough to cover your bills, and it can temporarily dent your credit score.

Relying on your overdraft sends the same message: you’re living beyond your means and can’t manage money carefully.

Finally, leaving a joint bank account open after a breakup can count against you, because lenders see it as a financial connection to someone else’s debts.

The pattern is clear: lenders want to see you living within your means and managing money responsibly. Before you apply for a mortgage, audit your spending. Stop using buy-now-pay-later, avoid opening new credit accounts, and keep your overdraft untouched. It might feel restrictive, but it’s your ticket onto the property ladder.

If you’re worried about your credit file, request a free report from Clearscore, Experian or Equifax to spot any problems early.