New research from financial education charity Money Ready, supported by the Berkeley Foundation and reported on 22 October 2026, found that 32% of 18 to 40-year-olds have used a credit card to pay rent, a mortgage or essential housing bills. If that sounds familiar, you are far from alone, and it does not have to stop you buying or remortgaging. It does mean planning ahead.
What the research found
Seven in ten (70%) of those surveyed had used at least one form of borrowing to cover housing costs. Alongside credit cards, 26% had borrowed from family or friends, 24% had used buy now, pay later (BNPL) and 21% had used an overdraft.
The knock-on effect is the worrying part. 26% said they had been turned down for a rental property or a mortgage because of their finances, and around a third of those rejections came from failed credit checks linked to debt they did not know they had.
How lenders look at everyday borrowing
Using credit is not a problem in itself. What lenders want to see is that it is well managed. When you apply, they typically look at:
- Your credit file – missed or late payments, defaults and how much of your available credit you are using.
- Your bank statements – regular reliance on an overdraft, BNPL or credit cards to get to payday can raise questions about affordability.
- Your monthly commitments – card and loan repayments reduce the amount a lender may be willing to offer.
BNPL has also changed. The FCA began regulating it on 15 July 2026, and lenders now need to check you can afford to repay before you sign up, so these agreements are becoming a more visible part of your financial picture.
Had a setback? There are still options
Missed payments, defaults or a debt management plan do not automatically rule you out. Some lenders specialise in helping people whose credit history is less than perfect, and how recent the problem was, how large it was and whether it has been settled all make a difference. A CeMAP-qualified adviser can match your circumstances to lenders' criteria before you apply, which helps you avoid unnecessary searches on your file.
It is also a good time to get organised. The Bank of England base rate is 3.75%, with the next decision due on 5 November 2026, and the Budget lands on 28 October.
Quick tips
- Check your credit file with all three main credit reference agencies and challenge anything you do not recognise.
- Make sure you are on the electoral roll at your current address.
- Pay at least the minimum on every card, every month, and try to keep balances well below the limit.
- Avoid taking out new credit or BNPL in the months before a mortgage application.
- If repayments feel unmanageable, get free, confidential debt advice from MoneyHelper early.
- Talk to a broker before you apply, not after a decline.
Want to know where you stand? See how we help on our adverse credit mortgages page, download our free adverse credit mortgages guide, or read how we helped a Luton client with a debt management plan.
Sources
- The Intermediary – 32% of young adults rely on credit cards to cover housing costs (22 October 2026, Money Ready research)
- Mortgage Solutions – Almost a third of 18-40-year-olds use credit to pay rent or mortgage (22 October 2026)
- FCA – Buy now pay later (regulated from 15 July 2026)
- Bank of England – Bank Rate (3.75%, next decision 5 November 2026)
To talk it through, contact us or start your enquiry.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.