Buy Now Pay Later for Home Improvements: A Simple Way to Spread the Cost

Why BNPL is reshaping home upgrades in the UK

Buy Now Pay Later has moved from fashion checkouts to the heart of British households. With the UK BNPL market projected to reach about £38.5 billion in 2025, growing at more than 12% annually, it is now a mainstream way to spread the cost of bigger purchases. In practice, that means materials for a loft conversion, a new boiler, or a full bathroom refit can be staggered into manageable instalments rather than a single hit to your bank balance. Major providers like Klarna, Clearpay and PayPal are everywhere online, while UK fintechs such as Zilch are expanding fast, adding more ways to split payments at checkout.

The context matters. The cost of living has pushed more households to seek flexibility. Over 10 million people in the UK are expected to use BNPL in 2025, with strong uptake among younger adults who may find traditional credit harder to access. Importantly, BNPL has moved beyond discretionary buys. Retailers now weave these options into home improvement journeys, from kitchen showrooms to DIY platforms, so customers can finance essentials like appliances and building supplies without delay.

Home improvement demand is robust. The market was valued at £11.2 billion in 2024 and is forecast to reach £16.67 billion by 2033. Nearly 7 million homeowners plan to renovate by 2027, with typical project budgets in the mid-teens of thousands. As of 2023, average annual spend on home improvements sits around £17,000. For many, that level of outlay is significant. BNPL helps flatten the spikes in cash flow, smoothing purchase timelines while work progresses.

BNPL is not a silver bullet. Some plans are interest free if you pay on time, others charge fees for missed payments or convert to interest-bearing products beyond a promotional period. Delinquency rates are higher than traditional credit, particularly among young adults. The right approach is to treat BNPL as a structured schedule, not as extra money. Understanding repayment dates, fees and what happens if you miss a payment is crucial.

Used carefully, BNPL can support both DIY and professional projects. Nearly half of UK homeowners report saving over £1,000 by doing jobs themselves, and some save multiples of that. Financing materials and tools with instalments can keep progress moving without draining savings. For larger works like extensions, new kitchens or bathrooms, staged BNPL payments can complement other finance, helping you pay suppliers as milestones are met. The key is clarity: know the total cost, map the timeline, and match repayments to your income.

Understanding APR is not just about percentages - it is about what you will pay in real terms. Pin down the numbers, then decide.

Who benefits most from spreading renovation costs

If you are planning a project with defined purchase stages - cabinets this month, tiling next - BNPL can align payments to delivery dates. It suits homeowners and renters who want short-term flexibility without opening a full personal loan. Younger adults, in particular, value straightforward, interest-free instalments that do not typically report to credit reference agencies.

BNPL can also help households protecting an emergency fund. Rather than emptying cash reserves for a boiler replacement, a disciplined instalment plan can bridge the gap. Equally, if you are managing seasonal income or freelance work, splitting large material orders into predictable amounts can make budgeting simpler. BNPL is less suitable for those already struggling with multiple debts or those who cannot commit to on-time payments. In those cases, a fixed-rate loan with longer terms may be safer.

Talk the language of the checkout

• BNPL: Short-term instalment plans for purchases, often interest free if repaid on time.

• Instalment schedule: The number and frequency of payments - for example, 3 in 60 days.

• Promotional period: Interest-free window. After this, interest or fees may apply.

• Soft check: Eligibility assessment that does not impact your credit score.

• Hard check: Full credit search that can appear on your credit report.

• Late fee: Charge applied if you miss a payment deadline.

• Conversion: When an interest-free plan switches to an interest-bearing product.

• Credit utilisation: How much of available credit you are using - a budgeting factor even if unreported.

• Section 75 protection: Applies to credit card purchases over £100, not typically BNPL.

• Regulated vs unregulated plans: Some BNPL products sit outside full FCA regulation - check provider terms.

Ways to split the bill for your project

1. Pay-in-3 or Pay-in-4 at checkout

   • Short, interest-free instalments at major retailers. Best for materials, appliances and tools where delivery is quick and amounts are moderate.

2. Deferred pay then instalments

   • Buy today, pay later by a set date, then split remaining balance. Useful when cash flow improves next month but you need goods now.

3. Longer BNPL plans with soft checks

   • Extended terms offered by some providers. May include fees beyond a promotional window. Read the small print carefully.

4. Store-linked BNPL for big-ticket items

   • Some kitchen, bathroom or flooring retailers offer bespoke plans for larger carts. Good for project-specific purchases with staged deliveries.

5. Hybrid approach with a broker

   • Combine BNPL for materials with a fixed-rate loan for labour. A finance broker like Kandoo can help compare options across lenders and terms.

Pounds, payback and pitfalls at a glance

Can you get approved - and should you

Eligibility depends on the provider, the retailer and the size of your basket. Many BNPL checkouts use soft credit checks initially, looking at recent repayment behaviour with that provider and basic affordability signals. Limits typically build over time as you repay on schedule. For larger plans, expect more scrutiny and, in some cases, a hard credit search. Income stability, a verified UK address, and a track record of on-time payments are all helpful. If your credit file is thin or patchy, shorter, interest-free instalments can still be possible, but you should be realistic about limits and avoid stacking multiple plans.

Before you proceed, match the instalment timetable to your pay cycle. If you are self-employed, consider timing purchases around invoice dates. BNPL rarely includes Section 75 protection, so weigh the retailer’s warranty and returns policy carefully. If you are financing trades or bespoke items, confirm delivery milestones and cancellation terms in writing. The safest scenario is a clear plan, a buffer in your budget, and the discipline to pay early if cash allows.

From basket to build - the simple sequence

1. Choose retailer and BNPL option at checkout.

2. Review total cost, schedule and late fees.

3. Complete soft check and identity verification.

4. Align instalment dates with your payday.

5. Confirm order, track delivery and invoices.

6. Set up direct debit or card autopay.

7. Monitor spend in the provider’s app.

8. Overpay early if budget allows.

Is it worth it - the balanced view

Read this before you click pay later

BNPL works best when it funds a defined, affordable plan. Start with a realistic project scope and a contingency of at least 10 percent. Lock in quotes from trades and delivery dates from retailers to avoid paying instalments before work begins. If your plan relies on an interest-free window, set calendar reminders several days before each due date and confirm autopay is active. If cash flow is uncertain, scale back the basket or consider a longer-term fixed-rate alternative. Finally, avoid stacking multiple BNPL agreements across providers - it complicates budgeting and increases the chance of missing a payment.

Alternatives that might fit better

1. 0 percent purchase credit card for protected buys over £100.

2. Unsecured home improvement loan with fixed term and rate.

3. Remortgage or further advance if long-term financing is needed.

4. Savings-first approach - delay purchases to avoid borrowing.

5. Interest-free retailer financing for specific brands or ranges.

Questions homeowners ask most

Q: Is BNPL really interest free? A: Often for promotional periods, yes. Missed payments or extended plans can trigger fees or interest. Always read the provider’s tariff and repayment schedule.

Q: Will BNPL affect my credit score? A: Many plans use soft checks and do not report on-time payments. Missed payments, collections or hard checks for larger plans can impact your credit profile.

Q: Can I use BNPL for tradespeople, not just materials? A: Some providers and platforms allow it, but availability varies. You may combine BNPL for materials with a separate loan for labour costs.

Q: What size project suits BNPL? A: Smaller staged purchases and mid-size carts are ideal. For large renovations, BNPL can complement other finance rather than carry the entire budget.

Q: How do I stay safe using BNPL? A: Keep a single plan at a time, align instalments to payday, enable autopay, and maintain a contingency fund. If your circumstances change, contact the provider early.

Q: Are returns and disputes handled differently? A: BNPL sits between you and the retailer. Returns usually pause or adjust payments, but policies differ. Check both the retailer and provider terms before ordering.

Ready to move from planning to purchasing

Map your project, price the materials, then choose a payment schedule that respects your budget. If you need help comparing instalment options with longer-term finance, a UK retail finance broker like Kandoo can introduce regulated lenders and help you weigh costs, terms and timelines side by side.

Important information

This guide is for general information only and is not financial advice. Always check provider terms, consider your circumstances and seek regulated advice if unsure. Borrowing is a commitment. Missed payments can cause serious money problems.