STEPHEN LEWIS looks at the options for those who find getting a mortgage isn't easy.

THERE may be a mortgage bonanza under way, but the number of people who cannot get a mortgage is rising too.

Changing work patterns, the boom in self-employment and the spiralling divorce rate mean that as many as one-in-four applicants will at some stage find themselves struggling to get a home loan.

Those liable to run into problems, according to the September issue of Moneyfacts magazine, include the army of part-time and self-employed workers - in service and leisure industries, in finance, insurance and IT - whose lack of a regular, guaranteed income means they no longer qualify for a standard mortgage.

Others who find difficulties include those who prefer not to specify their salary and people with bad credit histories or County Court judgements against them. Plenty more can find themselves missing out simply because they are regarded as too old to get their mortgage repaid before retirement.

All such customers are regarded as 'non-conformist' business, because in some way they fall outside the lending rules which have come to regulate the market.

All is not lost, however, if you do fall into one of these categories. Charles Helfferich, of York-based Grosvenor Financial Consultants, says the mortgage lending market is now so competitive, many lenders are becoming more flexible when it comes to offering mortgages to those who would traditionally have been seen as too high-risk.

If you're in a category referred to by lenders as 'sub-prime', however - usually those with a bad credit record - while you may be able to get a mortgage, you could end up paying through the nose for it, Charles warns

Here is our own guide to how best to set about getting that all-important home loan.

Self-employed

The situation is much better now than it was a few years ago, Charles says. Whereas before you may have needed to show three years worth of accounts, many lenders will now simply contact your accountant and check that you are running a viable business. Being able to pay a substantial deposit makes it easier to get a mortgage. And while, historically, lenders who did offer a mortgage took the attitude they were doing you a favour and made you pay for it, now there are some better rates available.

Even so, if you simply go along to your nearest high street lender, you may find yourself becoming disheartened, Charles warns. The best advice is to seek advice from an independent financial adviser or broker. Try two or three, to make sure you get the best deal, Charles says.

Contract/ part-time workers

Depending on your credit history and the size of deposit you can afford, you can again be fairly confident of finding a lender. "But it is not going to be the broadest range of products," Charles warns. Again, an independent broker or financial adviser should be able to help.

Divorcees

Divorcees tend to have a fair amount of equity but, especially if you don't have a full-time job, a relatively low income.

If you come from a marriage where you had a long relationship with a particular lender, that will encourage them to look at you more sympathetically - especially if you have a good credit rating. A few lenders may even consider including maintenance payments and benefits as normal salary payments for the purposes of assessing the amount they are willing to lend.

Again, being able to make a reasonable deposit will help convince them you are serious and not a bad risk. If all else fails, another option to consider is a guarantor.

There are, however, dangers. Divorce can be emotionally unsettling, and there can be a tendency to want to get settled again quickly, especially if you have children to think of.

The best advice is not to rush into accepting the first mortgage offer that comes your way, Charles says. "Once the dust has settled, it can be a shock to find that you have over-committed yourself." Again, a good independent broker can advise.

Poor credit history

You can find yourself with a bad credit rating for a number of reasons - non-payment of mortgage, credit card, even council tax. People who have just gone through a divorce can often find themselves in a difficult financial position.

Whatever the reason, it will affect your ability to get a mortgage - and if you do find one, you could well end up paying through the nose. Clients with a poor credit rating often find themselves locked into uncompetitive rates with high redemption penalties - which make it ruinously expensive to try to change mortgage lender, even if you subsequently manage to pay off your debts.

Best advice is to seek advice from a selection of independent brokers, to see what is the best deal available, says Paula Sidebotham, of York Citizens Advice Bureau. Before accepting a mortgage or other loan, however, it is very important you make sure you are not over-committing yourself - because if you default on a second mortgage, you can expect little sympathy.

Local financial advisers and mortgage brokers can be found in Yellow Pages. The CAB cannot help you find a mortgage, but can advise you if you are having problems making payments on your existing mortgage. Call 01904 636066.