The good news is that negative information on your credit score is not permanent, and positive changes in your credit habits will begin having an immediate impact on your score. Additionally, lenders use other factors to determine loan eligibility.
• Pay bills on time each month: Particularly those for Credit cards & Loans, Bill payments will have directly impact your credit score and paying bills on time is a positive first step in improving a bad credit history.
• Check your credit history: Before applying for any mortgage, you should always check your credit report carefully; you can obtain a copy of your report from one of the major credit bureaus, which are CIBIL, Equifax and Experian.
• Manage your mortgages: People with bad credit may get approved for mortgages far below their desired amount, but having any type of mortgage on your credit report will improve your score, so consider a more modest home and fix it up.
You should also avoid making lots of applications for credit, as these searches will affect your credit rating.
You may also wish to speak to your current account provider to see what mortgages they offer and explain to them your credit history situation. If they have no products suitable for you, then at least you know without having to make an application.