The following are beginner pointers on choosing the best mortgages.

Evaluate your finances. They will dictate the type of loan you need and how much you can afford to borrow. Check your credit rating at Experian and Equifax and in the U.S.A., your FICO score, your current income and debts and figure out the size of the deposit you can afford. Then work out how much of a mortgage you can afford.

In some cases, you are able to find a lender that will solely demand a low-cost deposit in the 5 per cent range. However, this is infrequent and the majority of the time brokers need anywhere from a 10-20 per cent down payment. Because of the down-payment requirement folks frequently find mortgage deals difficult. Although, with a little bit of investigation, mortgage deals could be discovered that do not demand such a high deposit.

Work on your credit. Spend a year or two making sure all your payments get in on time. Give up applying for new credit. Cut the balance on your current debts. Because rates of interest are already rising, you can't afford cash to buy to lock in at a good rate. Another year prior to buying could spare you tens of thousands over the life of the choosing the best mortgage.

Your credit rating (USA): A FICO score between 620 and 699 means you'll probably pay higher interest than if it was 700-plus. (UK/USA): If your credit rating is poor, it's smarter to work to improve it rather than be forced into a sub-prime deal with a high interest rate. The mortgage that's best for you will depend on a number of factors; how much mortgage you can afford, how long you plan to stay in the home, your credit rating and your future plans and prospects.

Shop around for your repayment protection cover. Having this type of cover to protect your repayments in the event of redundancy, accidents, or illness, is important. You do not have to take it via the lending agent that you take your choosing the best mortgage through. Instead, look at the various deals available through other brokers.

Watch out for fly-by-night financiers closing their doors and selling their mortgage deals on the secondary market. You want a lender that's going to give you handy customer service and do so for thirty years. Look for one whose personnel answer questions, doesn't try to rush you and is genuinely interested in helping you.

•Fixed rate: 10, 15, or 30-years, you pay the same interest rate over the term (period) of the loan. For long term residents of the house they buy. Offers peace of mind of paying the same amount every month.

•Variable rate: the interest rate is initially lower than a fixed rate but it can vary according to current market rates. Your monthly repayment premiums aren't fixed, so it's riskier. For those who want a low rate to begin with, who want to sell in a few years or who want to take a chance that rates can go even lower.

•Interest-only mortgage: The standard is an amortization mortgage. This means the mortage 'dies off'. Your repayments include both principal and interest and thus the amount you owe goes down over time until the mortgage is no more. An interest-only mortgage means, however, your monthly repayments don't eat into the principal. You are only paying off interest charges. You can pay off the principal in stages at any time. This is not a great option as you are not building up equity in your property but there are no pre-payment penalties. This is good for people with a consistent annual income an irregular monthly one. Pay off the principal when you can and the interest monthly.

I hope these few beginner pointers will help you in choosing the best mortgage.