39% of 20 to 40-year-olds are planning to apply to the government’s Help to Buy mortgage scheme in 2014, according to a report commissioned by Experian CreditExpert.

However, some of these Help to Buy Hopefuls could well be ill-prepared, with just 40% of Help to Buy Hopefuls being registered to the electoral roll at their current address.

Furthermore, the insight report also found that a quarter of would be Help to Buy applicants have never reviewed their own credit report and 7% have not saved for a deposit.

The Experian Help to Buy Hopefuls Insight Report, based on interviews with more than 2,000 20 to 40-year-olds, also reveals that Help to Buy hopefuls account for seven in 10 potential mortgage applications among the under-40s. A quarter of Help to Buy Hopefuls will apply in the second half of 2014 with 7% looking to move in the next three months.

25% of Help to Buy Hopefuls have never checked their credit report to better understand how their history of managing credit could impact their application for the scheme. But 64% have checked their credit report within the last year and 31% in the last three months.

Peter Turner, managing director, Experian Consumer Services, UK & Ireland, said: “Help to Buy has brought homeownership to within touching distance for thousands of younger buyers earlier than they may have dreamt possible. But it’s important to remember that the deposit is only part of the equation and consideration must be given to how much you can afford to borrow – and crucially repay in the years to come.

“A larger loan means lenders taking close look at your ability to repay and a large factor in that will be based on your credit history. Anyone looking to make the most of Help to Buy would be well advised to check their credit report to better understand their credit history, and ask for help if needed to ensure your credit report paints the best possible picture – before you make your application.

“Hopefuls should also note that in the short term, future applications for credit could be negatively impacted as lenders may want to see how well you are repaying your current credit commitments before offering you any more credit. Take this into account in your financial planning for the year ahead and, where possible, give the mortgage time to mature before making any future applications.”