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Ray Boulger of John Charcol told first-time buyers with small deposits to spend on their credit cards as they would on their debit card, according to the Evening Standard.

"Buy your groceries on it, go out to dinner on it, spend on it what you'd normally spend on a debit card.

"And make sure you pay it off each month to prove you're handling the debt," he told the paper.

This could be one way first-time buyers could demonstrate they have a history of successfully managing debit, the broker said.

His comments come as the lack of mortgages continues to affect those without a large deposit.

Catherine Hearnden, director of MyMortgageDirect recently predicted the number of mortgage approvals is likely to increase over the next year or so.

However, she warned lenders must "look carefully at their loan-to-value ratio because that is going to hamper the market for a long time to come if they don't start reducing the amount that people need for deposit".

Posted by Sarah Nyman

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Credit Cards	0% Balance Transfers	0% Purchases	APR Representative (Variable)
	Tesco ClubCard Credit Card
	9 months	15 months	16.9%
** 16.9% APR representative (variable). Based on a credit limit of 1200 and purchase rate 16.9% p.a(variable). **
	Virgin Credit Card
	20 months	3 months	16.8%
** 16.8% APR representative (variable). Based on a credit limit of 1200 and purchase rate 16.8% p.a(variable). **
	Barclaycard Platinum with BT
	22 months	3 months	17.5%
** 17.5% APR representative (variable). Based on a credit limit of 1200 and purchase rate 17.5% p.a(variable). **
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