Ready for a mortgage? Pimp your finances first

Laura Whateley, author of Money: A User’s Guide Once upon a time, to get a mortgage you just had to earn the right amount of money – how much you could borrow would be a multiple of your salary. How much you earn still counts (you can borrow between about two and five times your salary, depending on what bank you approach and how good a prospect you appear to them), but your spending habits and credit history are now equally as significant. Ideally, you want to try and get both straight at least six months before you want to buy.

Your bank will usually ask for three months of bank statements, so in this period avoid bounced payments, using your overdraft, payday loans or gambling. You’ll also have to fill out an application form showing your outgoings. You might not be able to borrow as much money if these reveal you to be a compulsive spender or in debt that you don’t clear each month (don’t worry, student loan debt is one exception and doesn’t count).

Look up your credit history with one of the credit reference agencies such as Experian; you can add a note on your file if any entries are incorrect. Oh, and try to avoid any cash machine withdrawals outside bars and clubs at 3am.