For most of us, a mortgage is the biggest financial commitment we're ever likely to make, so it is crucial to choose the right deal. However, with the myriad of choices and sneaky hidden extra fees, its certainly not easy.

So here's our simple guide to navigating the mortgage maze.


1. Interest-only versus repayment
This is the first factor to consider as it determines how you will repay the mortgage. An interest-only mortgage means you only pay off the interest rather than the capital, which brings down the size of your monthly repayments – but means the original debt remains outstanding at the end of the mortgage term. It is possible to start on an interest-only deal, and switch to repayment at a later date.

With a repayment mortgage, each monthly payment chips away at the total loan amount, which means repayments are higher but ensure the debt is cleared at the end of the term. A repayment mortgage is the most sensible option in most circumstances, unless you have a specific equity-based investment to cash in and pay the mortgage shortfall when the deal ends.

2. To fix or not to fix
Mortgage deals generally fall into three categories: lenders' standard variable rates (SVRs), tracker deals and fixed-rate products. The right option for you will depend on your attitude to risk.

SVRs offer little security. The rates are set at the lenders' discretion, which means they can rise at any given time and do not have to fall in line with the Bank of England base rate. Like SVRs, tracker mortgages follow the base rate, but unlike SVRs they can't be priced at lenders' discretion and will rise (and fall) with the base rate.

Fixed rates offer the most security, because they ensure repayments remain the same for the duration of the deal. If you want to have confidence that your repayments won't increase during the next two-five years, a fixed-rate deal – although likely at a higher rate than tracker or SVR – could be the best option.

3. Research
Mortgage lending restrictions are tighter than ever which makes it really worth seeking independent financial advice. A mortgage broker will help you find the product most suited to you and can guide you through the lender requirements.

While seeking advice is imperative, so is doing your own research – scour the internet to get an idea of rates to ensure you're getting the very best deal. Some products are only offered direct through lenders, so brokers won't have access to them. If you are remortgaging, speak to your current lender to see what it can offer you, but don't feel under pressure to stay if you find a better deal elsewhere.

4. Watch out for fees
Monthly repayments are not the only mortgage cost – you can also get stung with a string of other fees on top of the initial arrangement fee. These include anything from booking and valuation fees, to charges for falling into arrears, changing from interest-only to repayment and even for choosing to take out your buildings insurance with someone other than your mortgage provider.

These extra charges make it quite tricky to compare deals on a like-for-like basis as they are often hidden in the small print. This is where a broker can really help – to identify the true cost of a deal, taking into account both headline interest rates and the sneaky add-on fees.