Buying a first home is a major milestone, but once the keys are handed over, a new challenge begins: turning an empty shell into a liveable, comfortable space. While the initial costs of a deposit and fees are accounted for, the price of furnishing a home often catches people off guard — from beds and sofas to electrical appliances and curtains – on average, first time buyers (FTBs) spend £15,509 decorating and furnishing their homes*.
According to reports, many Brits have used a credit card** to fund home purchases – which often incurs high interest rates. However recent shopping data from Klarna, the AI-powered payments and commerce network, shows that purchases made using its interest-free flexible payments in the home goods category have increased by 100% in Q1 2025 compared to Q1 2024 — indicating that many are looking for smarter, more considered ways to spread the cost of one-off big ticket buys.
The biggest spike was seen in household electrical appliances and whitegoods. Furniture purchases made with Klarna’s interest-free payments also rose by 35% in Q4 2024 compared to Q3, as shoppers timed big-ticket home buys around peak end-of-year sales.
As new homeowners adjust to added expenses — from lower stamp duty thresholds to monthly utility bills — having access to flexible, interest-free payment options can offer a useful way to budget for larger, one-off purchases and gradually create a space that feels like a home.
For instance, a first time buyer purchasing a £350,000 home now needs to set aside an extra £2,500 for Stamp Duty fees — money that could otherwise go towards home furnishings or savings.
Klarna is integrated at the checkout of a wide range of UK homeware retailers — including Habitat, Dunelm, Homebase, and John Lewis — giving homeowners the flexibility to shop for quality pieces in a way that suits their budget and timeline.
And it’s not just about how people pay — it’s also about how they plan. Klarna’s Search and Compare tool, available in the app, helps buyers track down better deals on everything from kettles to dishwashers by comparing prices across thousands of retailers. For instance, Klarna’s search results are currently showing a popular Smeg kettle for as little as £128— £58 less than other listings — while a Bosch dishwasher can be found with savings of up to £71.
Smart Money Moves for Furnishing a First Home on a Budget
For first-time homeowners in particular, furnishing a new space is a delicate balancing act—wanting to create a stylish, comfortable home while keeping spending in check.
Personal finance specialist Karoline Bliemegger, at Klarna, shares her top tips for making smart home purchases to help make your money go further:
- Start with the essentials – Rather than rushing to fill every corner, focus on key items that make the biggest impact: a bed, sofa, and kitchen essentials. Planning and prioritising purchases helps avoid unnecessary spending. Adding the final pieces to complete your space can be a fun and joyful process, which there is no need to rush.
- Explore pre-loved and refurbished options – Check out vintage shops, second hand stores, and online marketplaces like eBay, as well as retailers that offer refurbished furniture and appliances—often at a fraction of the original price.
- Time your purchases around sales moments – Big-ticket items like sofas and TVs often see sizable markdowns during seasonal sales. Many retailers also offer exclusive discounts to email subscribers that can knock money off the cost.
- Compare prices before making a purchase – Sale season or not, it is possible to save big on house essentials. Use Klarna’s in-app Search and Compare tool to compare prices on millions of items across thousands of retailers. That espresso machine or air fryer you have your eyes on may be funded by the savings you made on other items.
- Spread the cost where it makes sense – For larger purchases, interest-free installment options allow buyers to budget more effectively without a big upfront hit. For those one-off purchases this allows first-time buyers to manage their cash flow while investing in the items they need to set up their new homes.
“By planning purchases strategically and using Klarna’s flexible interest-free payments and price comparison tool, first-time homeowners can better manage their budgets when shopping for those one-off bigger ticket items. This helps them on their way to creating their dream space and minimizes having to ‘make do’ with the classic camp chairs, air beds or makeshift curtains in the early days.” Karoline Bliemegger, Finance Expert and Product Manager at Klarna.
Klarna’s Search and Compare tool, available in the Klarna app, allows homeowners to find great deals on essential kitchen appliances, electronics and more by comparing prices across thousands of retailers.
First Time Buyer is an exciting bi-monthly glossy which takes a stylish and comprehensive look at all the options available, setting them out in an entertaining and informative way, and helping potential customers navigate their way through what is often a daunting and complex process. We dispel the myths, reinforce the facts and arm the reader with the tools necessary to make their homeownership dreams a reality.
