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Mortgage lenders are currently turning down almost one in four mortgage applications – so you have to be sure that yours is as good as it can be if you have any chance of getting accepted.

According to data from the Bank of England's June lending survey, of 67,000 mortgage applications, lenders turned away 15,778 potential borrowers. That's one in every four turned down for being too risky, many for including misinformation or for being overly-optimistic.

The Bank also says UK gross lending figures to be £10.3bn in June 2009, 2% lower than in April, and more than 50% down on last year's figures. The Bank says this is the weakest credit flow since December 2000 – so lending is restricted and the chances of securing credit are getting slimmer.

You may be starting to get sick of hearing 'no' from money lenders – credit cards, personal loans, remortgages, second mortgages – you may have tried everything to boost your finances during this difficult time.

But every application you make, every attempt to get hold of credit is recorded and ultimately goes against you – a failed application creates a 'footprint' on your credit score which shows other lenders that you have continually tried and failed to get hold of extra money. This doesn't look good, and sounds alarm bells in other lender's underwriting departments – essentially your applications prove you are not a good bet as a borrower.

So stop applying for credit and go straight to a financial adviser. They will go through your finances with a fine tooth comb and tell you exactly what you can and can't apply for. Then, if they are confident that you will be accepted for a loan, they will help you put together an application form that lenders will read and many will accept.

SOURCE: BoE, 19/06/09

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.