Most lenders use a system of credit scoring to assess potential clients. This system has proved statistically reliable for the lenders but does not take into account individual circumstances. Fortunately there are still some lenders who will look at applications individually

Allowing that you satisfy the lender's requirements with respect to your income and employment, there are two areas which may need examination:

Proof of residence: The lender will need to be able to establish where you have been living for the past 3 years. If you are not on the electoral roll, or do not appear on their credit file, then they will not be able to assess your credit worthiness

Action: You may need to be able to provide proof of where you were living, for example bank statements, utility bills, driving license etc. If you are unable to provide sufficient proof then another avenue might be a 'non status' mortgage.

Credit history: Poor credit will obviously count against you, information regarding your credit history will be held by the credit reference agencies for a period of 6 years. If you have no history at all then that will also go against you, as you have no credit history by which to be judged. If you have, or have had loans in the past and the payments have been paid on time then this is positive proof of your ability to service a credit agreement, and will be looked on favourably.

Action: If you do not know the nature of the credit problem then you will have to apply to the credit reference agencies for a copy of your file. Most mortgage lenders will use one of the two credit reference agencies listed below.

Experian - http://www.uk.experian.com