Choosing the mortgage that's right for you

With thousands of deals out there, it can seem daunting trying to track down the mortgage loan that's right for you. Every borrower has different needs, and there are an infinite variety of different features to choose from. To make sense of the mortgage maze, try following these steps:

1. Arm yourself with a basic knowledge of mortgages

An idea what SVR and Base Rate mean, together with a broad understanding of how mortgages work will help you to feel a lot less baffled when confronted with the jungle of mortgage advice. Refer to the mortgage guide to clear up any terms you're not sure of. (Be aware that individual lenders will usually offer descriptions of their own products, rather than a clear overview of mortgages in general.)

2. Take a clear look at your own situation

Have you made a budget? Where do you anticipate being five years from now? Will your salary stay at the level it is now, or will you be earning more? How long are you likely to stay in the house you buy? What purpose are you buying it for?

These are just a few of the questions you need to ask yourself to work out what kind of mortgage you want. Taking the time to draw up a budget may seem onerous, but it could save you from nasty future surprises. A mortgage is a long-term investment, which means you need to give some thought to your long-term plans.

Ultimately, today's mortgages can be practically tailored to fit the lender, with huge flexibility and a myriad of features to suit your individual needs.

3. Explore the market

Research the property market in your area, and in the country generally. No-one can foretell the future, but an idea of the current economic climate and recent trends will help when you decide how much to offer, and how much you need to borrow. Local papers will have a weekly property supplement, and there are hundreds of websites devoted to analysis of the property market.

4. Ask for advice

Estate agents will often offer help from their mortgage advisor. Check whether the advisor is independent or not - what fees they may charge for finding and arranging a mortgage. If they don't charge for their services, they may be chasing commissions with certain lenders. Most banks and building societies will be delighted to discuss mortgages with you. Shop around.

5. Read the small print!