There’s no shortage of people wanting to get on the property ladder – but the lending criteria are so tight that many first-time buyers are struggling to do so.

According to the Council of Mortgage Lenders (CML), 9,400 first-timers took out mortgages in February this year. That’s 7 per cent more than in January, but 45 per cent fewer than took out home loans in February last year.

Have no illusions – getting a mortgage is still extremely tough, but there are certain steps you can take to help increase your chances.

• What has happened since the recession began?
• Being turned down makes it worse!
• Tips for mortgage success

What has happened since the recession began?

There are certainly some gloomy lending stats around at the moment.

Knee-deep in a credit crisis, bank and building societies have really tightened up their lending criteria. In order to cut down their lending risks, they’re turning down many requests from borrowers that would have been accepted a couple of years, if not just 12 months ago.

According to recent research from GE Money Home Lending, more than 458,000 mortgage and loan customers had to apply at least four times before successfully getting credit during the last 18 months.

Around 30,000 people are thought to have more than eight applications each. And some 412,000 people weren’t accepted by anyone – despite repeated attempts. Eek!

Being turned down for a mortgage makes it worse

Worryingly, being turned down for a mortgage could actually make it even harder to get your application accepted elsewhere.

Every time you apply for a mortgage and are turned down, this failed application is logged on your credit record and could count against you.

The lender you go to next will be able to see the other application, and it could damage your reputation as a ‘safe’ person to lend to.

If you have many failed applications to your name, mortgage providers will be very wary of lending you anything at all.

However, don’t despair. If you’re looking for your first mortgage – or you want to re-mortgage onto a better deal – there are things you can do to up your chances of being accepted first time around.

Tips for mortgage success

Here are our top tips on how to maximise your chances of getting a mortgage:

• Do your homework.

Calculate exactly how much you need to borrow to get a home that suits you – but be realistic! You have to be prepared to compromise in order to get a home you can afford.

Prepare an accurate breakdown of your current income and expenditure and make sure your income is enough to comfortably be able to take on the new debt.

• Make sure your deposit is as large as possible.

In the current climate, deposit is key. The smaller the amount you have to put down the more you will pay for your mortgage. If you do not have at least five per cent you will not be able to get a mortgage as there are simply no 100% products on the market anymore.

To get the best deals having at least a deposit of 25%, although if you can scrape together 30-35% the interest rates you can expect to pay drop significantly. But, realistically, the bigger deposit you can afford to put down, the lower the mortgage rate you can expect to pay.

Read our Best Savings Accounts article for more advice on deposit-building.

• Check your credit record to find out exactly where you stand.

You can do this for free using a credit checking agency like Equifax or Experian. If your credit report lists any transactions or loans you don’t recognise, contact the agency immediately and get it cleared up – at worst, it could mean you’ve been a victim of identity fraud.

This is a MUST DO before you apply for any mortgages. It’s not scary and there are easy solutions if you find there are black marks. Check your credit here.

• Then make your credit record look as good as possible.

You can do this in a number of ways, including closing down unused credit cards and registering to vote. Read our article on cleaning up your credit record for more on this. If you have been very frugal and haven’t had to borrow any money before you will be penalised for not having a credit record at all!

• Make sure you declare all your outstanding credit commitments.

That includes credit cards, store cards, interest-free credit, personal loans, bank overdrafts and so on. Mortgage lenders don’t just take into account your salary – they also look at your outstanding debts and financial commitments.

So try and clear any substantial credit card debt, for example, before applying for a mortgage. If you do have debt to clear, check out our article seven quick ways to pay off debt.

• Always keep copies of any applications you do make.

Double check that it’s accurate and covers everything. If you’ve forgotten to include something, contact the lender and explain the situation straight away.

• Use an online mortgage comparison service.

This will help you to get an idea of the deals that are out there – before you commit to an application. The Moneymagpie mortgage advice service is provided by independent mortgage specialists London & Country. They cover the whole of the mortgage market and give you advice for free, so try them out – you have nothing to lose!

• Consider family...

If you think you will be unable to secure a mortage on your own income, you could consider letting your family help.

Your parents may be able to help you put down a deposit – or even act as guarantors for your mortgage. The bank would then take into account your parent’s income when deciding how much they are willing to lend.

However, be aware that this is a big commitment for your parents to take on, especially as they would be liable for paying the mortgage if you defaulted on payments.

• …or friends

You could consider buying with friends. Your combined income streams would make you a much more attractive proposition for banks.

Beware, though – this is a long term commitment potentially fraught with difficulties (how close are you as friends? What if one of them decides they want to move in with a partner? Or one of them loses their job?

If you are considering this option, think very carefully and make sure you get a legal contract drawn up so everyone is clear about both their rights and responsibilities.

• Use a broker.

Finally – once you’ve done your own research – consider using a broker to help with the actual application process.

These experts know the market inside out, and should be able to advise on which applications are likely to be successful. This should help avoid the string of failed applications that could damage your credit record further.

The Moneymagpie mortgage advice service is run by independent brokers London & Country – click here to have a look at the deals on offer.

Good luck!

Useful Links

• Our FREE downloadable mortgage guide
• The moneymagpie mortgage advice service