Frankly, if I am going to loan you 500k for 30 yrs, it isn't exactly comforting to know you need to split up a pair of shoes into 4 installments for 'budgeting'...
Having said that, I wouldn't be suprised if credit risk and disrupting BNPL is the goal. How you make a creditor not do that I dont know, surely a bank can also deny a mortage if a client has a credit card as well? Is that anti competitive?