By Rachel Wait

If you're hoping to buy a home this year and are looking for a mortgage, here are five ways to help ensure you get accepted.

1. Improve your credit score

Before you make a mortgage application, it's well worth checking your credit rating to see whether it's up to scratch. You can get a £2 credit report from credit reference agencies such as Equifax, Experian and Callcredit. Equifax and Experian will also let you sign up for a free one month trial – just remember to cancel the subscription after that time if you don't want to pay.

If your credit report is not looking too good, there are a number of things you can do to improve it.

Firstly, get on the electoral roll which is used by lenders to check you live where you say you do. It's also a good idea to check your credit record carefully and ensure there are no mistakes. If there are, get them corrected immediately. You can contact your lender and ask them to correct it or you can contact a credit reference agency and ask them to contact the lender for you.

You can also add a 'Notice of Correction' to your report if you've missed a few payments in the past on a credit card, for example, due to illness or redundancy. This is a 200 word statement that gives you a chance to explain the situation and may help the lender to look more favourably upon you, particularly if it was a temporary situation that has been sorted out.

Be warned that even if you have never had credit in the past, this may actually go against you as lenders will have no evidence of whether or not you're a reliable borrower. So it's well worth taking out a credit card to build up your credit history – just ensure you pay off your bill in full each month.

2. Build up your deposit

Lenders are far more likely to be willing to let you borrow money if you have a large deposit for a mortgage. That's because the more you borrow from a lender, the more concerned it is likely to be that you won't be able to keep up with your repayments and that the home you plan to buy will fall in value so that it's worth less than the loan. Mortgages for 100% of the purchase price are generally now a thing of the past and there are only a handful of 95% mortgages available. So in order to increase your chances of getting accepted, it's worth saving up as much as possible.

What's more, the larger the deposit you have, the better the mortgage rate you are likely to get.

3. Don't make too many applications

Making too many applications can work against you. This is because the lender may run a credit check on you – and every time this is done it leaves a footprint on your credit record. If there are too many credit searches in a short period of time, this can adversely affect your credit rating.

So avoid making multiple applications and check whether the lender is going to run a credit search first. Some will do an approval in principle which may not leave a footprint or you can request a soft search which again will not show up on your record.

4. Lower your existing debt

If you already have debt in the form of a personal loan, overdraft or credit card, for example, try to pay off as much of this as you can before applying for a mortgage.

Not only will this save you money in terms of the interest you pay but it will also boost your chances of getting a mortgage. Lenders look at how much outstanding debt you have and the monthly payments you make before deciding whether or not to lend to you. Some lenders will even assess affordability using the potential amount of debt you could have (eg the maximum credit card limit you have), rather than the actual balance you have.

It's also a good idea to close any credit cards or other means of credit (store accounts, for example) that you don't use. By reducing your potential to borrow, you're more likely to get accepted for a mortgage. Remember lenders look at affordability now rather than simply a multiple of how much you (and your partner) earn when deciding how much to lend you.

5. Watch out if you are self-employed

If you're thinking about becoming self-employed, be careful. Unfortunately it can be harder to get accepted for a mortgage because your income isn't as stable as someone who is employed. As a result, lenders may be concerned that you won't be able to meet your mortgage repayments. The self-employed used to be able to apply for a self-certificate mortgage, but these have virtually disappeared since the credit crunch.

If you are contemplating working for yourself, you may want to apply for a mortgage that lasts for several years (for example, a five-year fixed-rate deal) as it can be hard to remortgage for the first few years you're in business.

If you are already self-employed, you can still get a mortgage but you'll need to have a good credit rating and be able to prove you have regular paid work. Many lenders want to see at least two years worth of accounts. 

6. Get your paperwork in order

Tying in with this, even if you're not self-employed, it's important to get your paperwork in order. Lenders often want to see your last three months' payslips and bank statements (check whether a print out from the internet is sufficient), your last P60 and proof of address. They may also want to see your last mortgage statement if you already have a mortgage. So make sure you have all of this ready before you make your application.