It might be worth waiting a year before trying to obtain a mortgage i.e. by saving up a deposit, sorting out your finances or getting a pay raise! However it's important that you make all your other loan and credit card repayments during that time to help improve your credit score.

Although some high street mortgage lenders are not interested in sub-prime lending, if your problems are historic and you have an ongoing and reasonable relationship with your bank now, it's worth asking them about the possibility of lending you money.

This is where the expertise of a mortgage broker can be invaluable (available via the Welcome Home mortgage service). All mortgage providers can treat borrowers differently and a good broker will focus on providers who are more likely to consider your application.

You should make sure though that these specialists do not overcharge you for specialist advice – specialist direct lenders can charge you more than 3% just to find you a deal; that is more than 3 times the standard broker's fee.

Don't just accept the first sub-prime mortgage you're offered. It’s best to remember that just as in the mainstream market, all deals are not equal.

If it has not already been made apparent in this guide then we would like to state it again... It is important to look at the interest rate. It can be higher than high street deals because you're deemed a greater risk however you should not be paying more than 1-3% above the base rate.

If possible go for a deal where the rate is set in relationship to the base rate or a fixed rate so that payments are guaranteed during the fixed term.