YouGov questioned over 600 potential first time buyers on behalf of Alliance & Leicester to find out their saving and spending habits, and the news was not good. Whilst 70% were actively saving up for a deposit on their new home, 75% admitted that they had outstanding debts to the tune of nearly £6000.

"Whilst saving is a good thing to be doing, it is pointless concentrating on boosting your savings when you are paying a fortune in credit-based interest," says Abbi Rouse of Interfinancial Limited, the online loans brokers.

Whilst some savings accounts offer interest in the region of 5% or above, in reality most offer far less. Compare this with the mid-range 16.9% interest charged by most credit cards and typical 29.9% charged by store cards. The case is particularly bad for those with multiple credit accounts through catalogues, loans and overdrafts where minimum payments are being made each month.

"By all means keep saving," continues Rouse. "But make clearing your debts a bigger priority. Any mortgage provider will be looking hard at your outgoings when you apply. If they see large amounts of outstanding debt, they will be less willing to provide that mortgage."

However, first time buyers should not worry excessively about having either outstanding credit or a history of borrowing to their name. Potential creditors like to see a good credit record of payments made regularly and on time. This reassures them that a borrower is likely to be responsible in paying their mortgage.

One category of UK consumers particularly likely to face a hard time getting a first step on the housing ladder are those with poor credit history. A poor credit history is easier to get than many people realise. Far from being a dramatic matter of County Court Judgments (CCJs) or insolvency, bad credit can arise out of just a few late or missed payments and can spell disaster for those looking for further credit.

"It's easy to slip behind with payments when you're juggling many different bills," says Rouse. "If you are focused on buying a house in the future, get your finances in order now. It looks better on your credit record and makes the house-buying goal more achievable."

One way of simplifying outgoing bills and controlling debts is by consolidating debts into a personal loan. For those who are currently tenants, an unsecured loan can offer a much lower interest rate than charges on their existing debts and can offer a shorter repayment term.

For those looking to buy a house some time in the future, consolidating debts and taking out a lump sum for banking can boost a potential deposit or house buying fund.

"People can be ignorant about the costs involved in buying a house," says Rouse. "They bank on a returned deposit from their rented property or hope that friends will help with moving, but it is still an expensive business. There's no doubt that having a lump sum put aside to use as a deposit and for other home buying expenses is wise."