You can easily check your credit score by obtaining your credit file here

Your final credit score is derived from information held about you from companies like your mobile phone provider, credit card provider, bank etc.

They also have access to public records to check for things like CCJs, bankruptcies and IVAs, plus information held on the electoral roll.

Depending on your score, lenders will either agree to lend you the money or not. Perhaps they’ll agree, but with conditions attached. For instance, you get your money but not as much as you asked for, and at a higher rate of interest.

Any adverse credit events are removed from your record after six years. And the further in the past they happened, the less impact they’ll have now.

A bad credit mortgage works just like any other mortgage. The only difference is that not as many lenders are willing to offer a mortgage to someone with bad credit, as they’re seen as a riskier customer. And those that do, tend to charge more. Your best bet to get mortgage approved is to contact an experienced mortgage adviser. A mortgage adviser will have access to more specialist lenders and deals that aren’t available on the high street. And they’ll often save you time, stress, heartache – and money.

When you apply for credit, lenders aim to verify two things:

1. That you are who you say you are
2. That you have a proven history of paying your bills on time

A poor credit score indicates that you can’t manage your money, which in turn means you’re a high-risk applicant.

The most common causes of bad credit are:

• Missed or late payments
• A default (a series of missed payments)
• County Court Judgment (CCJ)
• Debt Management Plan (DMP)
• Individual Voluntary Arrangement (IVA)
• Bankruptcy

Different things carry different weight. For example, missed mobile phone contract payments have less impact than missed mortgage payments.

If you’ve rarely, or never, had credit before, and so have no way of showing good financial management, that can also count against you.

There are things you can do to improve your credit score, meaning that you may be able to get a better rate on a mortgage. For example, you could:

• Register on the electoral roll
• Have a good account history
• Don’t miss any repayments

There are two main things you need to be prepared for:

1. You’ll likely to be able to borrow less
2. The loan will probably cost you more

The bigger the deposit you are able to put down, the more attractive you become to the lender so they’ll be more inclined to make you a mortgage offer. Also the bigger deposit you have, the lower the interest rate may be.