Kelly Miles, a 33-year-old mother of two from Portsmouth, Hampshire, was shocked to discover that an unpaid £3.99 delivery charge prevented her from obtaining a mortgage for six years. The forgotten fee, linked to a buy now, pay later purchase of an iPad mini in 2016, left a significant red mark on her credit file, derailing her homeownership plans.
The Discovery
When Kelly and her ex-partner applied for a mortgage after their landlord served them notice, they were met with rejection. Digging into her credit file, Kelly found the cause: a missed £3.99 delivery fee for the iPad mini she had bought as a birthday present. Despite repaying the £500 iPad cost within the six-month agreement, the delivery charge was overlooked.
Kelly told Kennedy News & Media: “Young me decided I wanted to get my ex-partner an iPad mini and I bought it on a buy now pay later. That part of it was fine, it was on a six-month agreement and I paid it in six months. Me and my ex lived in a rental property at the time and the landlord wanted to serve us notice on that rental property. We wanted to buy so we went ahead and put the mortgage application in which is when we discovered this big red mark on my credit file.”
Impact on Mortgages and Credit
The red mark meant Kelly could not be accepted for a mortgage, forcing her ex-partner to buy the house alone. She was also unable to take out any other credit for six years, as further applications risked additional marks on her file. Kelly expressed frustration at the lack of notification: “I never had notification of this - I don't remember seeing a single letter. Basically this £3.99 charge that I hadn't paid for delivery had been put on as a mis-payment so I'm meant to have paid it, but each time I've missed the payment, it's put that massive red mark on my credit file.”
Long-Term Consequences
The incident has made Kelly wary of buy now, pay later schemes. She now checks her credit score monthly, especially as she plans to apply for a mortgage next year. She urges others to do the same: “Frequently check your credit score - especially if you've taken out a new product, like a buy now pay later, or a finance product like a credit card or loan. You need to check quite soon after you've taken it out how that has been placed onto your credit file - checking that the information on there is correct.”
Advice to Consumers
Kelly advises avoiding buy now, pay later if possible, and emphasizes regular credit monitoring. “I'm not someone who's in debt so you would always automatically assume that your credit score must be good, but it wasn't. That experience put me off buy now, pay later - I would say avoid using them in general if you can avoid them,” she said.
