Eight steps to take before applying for a mortgage

If you're falling behind with your payments, there are specialist organisations that can give you free and impartial advice. Try Citizens Advice - you'll find a local office in the phone book or at www.citizensadvice.org.uk - or the Consumer Credit Counselling Service (CCCS) at www.cccs.co.uk. National Debtline is another useful resource - find it at www.nationaldebtline.co.uk.

Step 3. Give your finances a health check

Get to know your credit report, which gives you a snapshot of everything you owe and how well you're managing your repayments. It may highlight other areas where you can cut back or show that you could roll up several debts into a single, less costly loan. If you find any errors, get them corrected - it may help when you remortgage.

See your Experian credit report for free - it's a key step towards taking control of your finances.

Step 4. Watch out for sharks

Unfortunately, there are always people who want to cash in on others' misfortunes, so be careful before signing up with any organisation that offers a quick fix. If you do take this route, get independent advice and check the small print carefully before signing anything.

Step 5. Don't stop paying

Always try to pay your lender something, even if you can't manage the full amount. It shows that you are trying to meet your commitments and may improve your chances of negotiating a better deal.

Step 6. Read the small print

Check if you have any mortgage protection insurance and can make a claim on it. It's also worth finding out if you are entitled to any welfare benefits or tax credits that could help pay your mortgage.

Step 7. Raise some money

You may be able to take in a lodger or let out your property and rent somewhere cheaper. There may even be a market for your garage or parking space. Remember to get your lender's permission if you do any of these.

Step 8. Look after the pennies

There may be ways you can cut your monthly expenditure without too much pain, such as checking price comparison sites to find better deals for your household bills. But be wary of using your home as security - you could be putting it at greater risk if you fall behind with payments.

Step 9. Sell it yourself

If you want to cut your losses, you are better off selling your home yourself rather than abandoning it to your lender. You are likely to get more for it and will also still have somewhere to live. Don't wait until your lender starts repossession proceedings.

Step 10. Never give up

Don't be tempted to hand over the keys. You will still be responsible for the repayments and buildings insurance until the property is sold.

You can check your credit report for free with CreditExpert, the online credit monitoring service from Experian - click here to get yours now.