Applying for a first time buyer mortgage has been a rite of passage for millions of Brits for decades. It's part of the process of settling down, putting their foot-loose renting days behind them and hopefully calling their home their own.

It's no mean feat. Anyone who can scrape together a deposit should be given a medal just for getting that far towards buying their first home.

But will their mortgage application be accepted? According to research by one credit card company, one in five of us have had a credit application rejected and of those 10% have been turned down for a mortgage.

It's clear that for many thousands of wannabe home owners their first try at applying for a mortgage comes to grief; a quarter of all 24 to 35 year-olds have had a mortgage application rejected. Here's our guide to why lenders reject applications and what to do about it?

1. Poor credit history

Before you apply for a mortgage make sure you check out your credit report and credit score. You could well find some surprises on there. A less than stellar credit score can be more or less an automatic fail.

If you suspect your credit score isn't good enough to qualify for a mortgage spend some time in building up your credit instead of making an application which is doomed to fail.

2. Too many applications

Make multiple applications for credit or mortgages and, strange though it may sound, this can send out the wrong signals. Lenders may take the view your search for credit may be hiding financial problems. Multiple credit applications can adversely affect your credit score so think carefully before making any applications for finance.

3. Payday loans

This is something they don't tell you on those annoying TV adverts. If, since 2011, you've taken out a payday loan it will be logged in your credit file. Read more advice about payday loans and what they mean for your financial health.

Unfortunately, even if the loan was paid off in good order, it may well count against your mortgage application. Lenders often view payday loans as a sign the borrower is not financially responsible and may default on the mortgage.

4. Your job

One reason lenders turn down applications is that they may believe your salary is too low to meet the repayments, or you haven't been a job very long. Also, often the type of employment itself is an issue as lenders are notoriously, and very annoyingly, reluctant to grant mortgages to the self-employed.

If you run your own business, or are a contractor, it is well worth shopping around before you make your mortgage application to find those lenders who are prepared to provide credit to the self-employed.

5. Attention to detail

Frustratingly, simple mistakes on the application form can also lead to a 'no'. Take your time when filling out the forms and triple check every answer is accurate, particularly financial information such as your salary or expenditure.

6. Deposit too small

Lenders obssess about what's called loan to value or LTV. This is expressed as a percentage. A 90% LTV (the standard) mortgage is when the loan represents 90% of the property's value. The rest (10%) is provided by the first time buyer. A mortgage with an LTV of less than 90% is seen as a risky loan by mortgage lenders and they may reject an application on this basis.

7. Application rejected?

First of all you should ask the lender the reasons for your being denied a mortgage. Lenders are usually helpful and their answers may reveal a simple fix allowing you to confidently submit a new application at some point in the future.

The chances are though your credit report played a part in the lenders decision. If this is the case make sure you obtain a copy of the report and take steps to fix the issues and increase your credit score.

8. Pay rent on time and you could build your credit score

Millions of private renters who pay their rent on time each month don’t get the recognition they deserve on their credit report. You can now sign up to CreditLadder and add your rent payments to your credit history.

This could help your chances of being approved for a mortgage because reporting your regular rent payments can help improve your credit score.Credit reference agency Experian recently said that 80% of those who report their rent can see their credit scores boosted. This inturn means they will find it easier to access financial services, monthly contracts and loans. Experian says there are now 1.2 million tenants in the UK reporting their rent this way.

9. Mortgage application quick facts

• There are 11 million mortgages in the UK

• The average age of someone applying for a mortgage is 30 years old.

• Approximately 25,000-35,000 people apply for a first time buyer mortgage every month, depending on the time of year and the economy.

• The average household income of a first time buyers is £42,000

• First time buyers are lent approximately £9 billion every month to buy their first homes.

• The number of first time buyers is on the increase (February 2019) rising year-on-year by 6%.

CreditLadder can help you improve your credit score

If you want to improve your credit position by reporting your rent payments, CreditLadder is the only way to improve your credit score and position across all four of the main Credit Reference Agencies in the UK, namely Experian, Equifax, TransUnion and Crediva. Building up a high credit score has a lot of benefits, including helping you access finance at better rates - this can also help save you money.

CreditLadder also runs a free mortgage application service in partnership with Tembo which will tell you how much you could borrow.

Remember the information provided in this article is for information purposes only and should not be considered as advice.