Various factors can have a bearing on your mortgage application in that they affect your credit report, including your spending habits, amount owed on credit cards and loans, and whether you make prompt payments.
Your credit history will be used by a lender to decide whether they will offer you a mortgage or not. They will look at the credit report and the personal information you supply, like your salary details, so that the lender can decide how much to lend you. If you owe a lot of money on various credit products, you may be refused a mortgage.
There are some factors that can negatively impact on getting a mortgage, and missing or making late payments is definitely one of them. However, if you have never had any credit, this could also have a negative effect, as the lender will not have any evidence of you being able to repay debts. It is possible to obtain credit cards specifically designed to help you rebuild your credit. Make sure the amount outstanding is paid in full each month if possible.
There are ways in which you can improve your credit score, and these include paying all debts on time each month, in full if possible, not missing repayments and not having several credit cards. If you are considering applying for a mortgage, seek advice from a CeMAP qualified mortgage advisor, who may recommend a lender most likely to approve a mortgage.