Your Credit history and first time buyer mortgage deals

You've probably heard that information about your credit history is stored by credit reference agencies. They'll have details of any credit cards or bank loans you may have - and every time you make or miss a payment, that information gets stored on your file.

This feeds in to your credit rating, which could determine whether you'll be able to get some of the best mortgages for first time buyers.

To save time, many UK lenders operated a regimented credit scoring system to determine whether they're prepared to lend.

So, if you've got a low credit rating - perhaps because you've missed a couple of payments, or even because you don't have a history of borrowing money - you may fail the lender's score and encounter real problems securing a mortgage.

What can I do to improve my credit rating - and qualify for the most competitive first time buyer mortgage deals?

• First, contact one of the two main credit reference agencies used by the lenders, Experian and Equifax. For a small fee, they'll provide you with a copy of your credit report, or you may be able to arrange to have your report delivered each quarter.
• This will enable you to find out your credit rating and identify any credit problems which are affecting your score. If these problems aren't too severe, there are certain steps that you can take to help improve your credit score and allow you to qualify for some of the best mortgages for first time buyers.
• Make sure that you're on the electoral roll. Lenders like to see that you've been living at the same address for the last three years, but if that isn't the case, at least make sure that you're registered at your current address. Contact your local authority and ask to speak to their electoral services department.
• If you do have existing poor credit, this can be rectified by keeping up repayments under your current credit agreements.
• If your credit score is low because you haven't incurred any debts, it could be worthwhile applying for a credit card.

I've got bad credit - could I still qualify for first time buyer mortgage deals?

In this situation, a bad credit mortgage could be the most competitive product for you. Although certain lenders will view you as having impaired credit, mortgage lenders as a whole are increasingly offering solutions, in the form of adverse credit mortgages for those with credit problems, looking in detail at your individual situation and offering different products depending on the amount of poor credit on your file.