If you have a tarnished credit history, you may have difficulty getting a ‘prime’ mortgages, as these are generally only available to creditworthy borrowers.

You will be deemed to be an ‘adverse credit risk’ if you have ever had mortgage arrears, been bankrupted, had County Court Judgments (CCJs), or defaulted on loans or hire purchase agreements. Clearly the extent of such credit problems may vary so someone with only one small CCJ will be much better placed that someone with an extensive array of CCJs and arrears.

If you have a patchy credit record, you may only be eligible for a ‘sub prime’ mortgage which will be charged at a higher rate of interest than a standard mortgage.

Since the onset of the credit crunch, lenders are being much more selective as to whom they will lend to so even minor misdemeanours, such as missing a mobile phone payment, may now count against you.

If you have ‘heavy’ credit problems you will find it very difficult to get a mortgage as the number of lenders willing to offer sub prime mortgages has dwindled considerably since the recession and there is currently little funding available to service borrowers with serious credit problems.