By Rachel Wait

If you're hoping to buy a house, here are some quick tips to help you decide on the right mortgage for you.

1. Think about your deposit

If this is the first time you're buying a home, the first thing to do is to sit down and work out how much you can afford to put towards a deposit. It's really a good idea to think about this a long time before you're planning to buy a home as the more money you can save up for a deposit, the better off you will be. Generally, the very best mortgage rates are for those with a deposit of around 40%, but you can still get good deals with smaller deposits.

In contrast, if you're moving home, you need to assess how much your property is currently worth and how much of your mortgage you have already paid off to work out your deposit.

Don't forget to consider costs such as solicitor's fees, valuation fees, moving costs, stamp duty and so on. These can be very expensive so make sure you have factored this in beforehand as these fees can take a significant chunk out of your savings/deposit.

2. To fix or not to fix?

You then need to decide whether you want to choose a fixed-rate mortgage or whether you'd prefer to opt for a variable rate mortgage. If you're on a strict budget and know you wouldn't be able to meet your mortgage repayments should interest rates rise, you're better off choosing a fixed-rate mortgage. That way you can be reassured your repayments will stay the same for the length of the deal (usually two, three or five years).

However, if you can afford for interest rates to rise, you might prefer to take a risk and plump for a variable rate mortgage such as a tracker mortgage - these are currently cheaper than fixed-rate deals. At the moment, there is much speculation that base rate will remain at 0.5% for a few more years, so you may feel this is a risk worth taking and you can always switch to a fixed-rate loan if it looks like the situation is changing. But whatever you decide to do, the main thing is to ensure you choose an option you know you can afford. The last thing you want is to fall behind on your repayments.

3. Choose your term

Generally, mortgage terms are for 25 years. However, if your mortgage repayments are going to be expensive, you could consider increasing the term of the mortgage. By doing this, your repayments will be spread out over a longer period and will therefore be lower each month. However, this does mean you will end up paying far more in interest. To make up for this, you could choose to reduce the term of your mortgage when you later come to remortgage so that you're paying off more of your mortgage each month (saving you interest).

Bear in mind that this is an option that's only worth considering if you're not yet close to retirement – after all, you won't want to still be paying off a mortgage once you've retired.

4. Compare rates

The next step is to shop around and compare deals carefully. Don't forget to take arrangement fees into account when working out how much it will cost you. Make sure you've compared interest rates for a number of different mortgages to ensure you are choosing the right deal for you.

But be warned that you should avoid getting too many quotes. This is because lenders may run a credit search when you apply for a quote and every time this happens, it leaves a footprint behind on your credit report. If you have too many credit checks carried out in a short space of time, this can adversely affect your credit rating, making it hard to obtain credit in the future.

So try to find out which deals are available before applying. You can then ask for an agreement in principle once you've chosen a particular mortgage.

5. Check the fees

As well as comparing the interest rates on mortgages, you should also compare fees. Arrangement fees can range from nothing to around £2,000 and in some cases they will be a percentage of the amount borrowed – which can soon stack up.  You will often find that the deals that come with a lower interest rate charge higher fees. For instance, it may be worth paying an extra 0.5%-1% if the fees are far lower.

Work out the total cost over the length of the deal. You should also check the terms and conditions to see whether there are any early repayment charges if you pay off your mortgage early or if you move to another deal before yours has come to an end or whether there are overpayment charges.

6. Talk to a broker

Finally, it can be a good idea to talk to a mortgage broker. A good mortgage broker will know which deals are available to you and can give you advice about which product best suits your needs. The broker should also be able to advise you about fees and everything in the small print you need to be aware of.

So if the mortgage market is looking a little confusing, seeking the advice of a mortgage broker is well worth it. You can find out more in Should you use a mortgage broker?

If you do want to speak to a fee-free adviser, you can talk to one right here at mortgages.co.uk. Simply fill in a form or call 0844 209 8725.