Most people will need a mortgage to buy a property. These are loans secured against your home operated by banks and building societies.

Mortgages are typically paid back over 25 years at a specified interest rate. The Bank of England fixes the base interest rate, but lenders can offer a range of products at varying interest rates.

Get independent advice

Before borrowing money to buy your home, take time to consider all the costs involved and the choices available. Get independent information by reading mortgage magazines or useful guides such as 'Buying a home' from the Council of Mortgage Lenders or the Financial Services Authority (FSA)  'Guide to mortgages', which are both available as PDF  brochures.

Before you sign on the dotted line

Before taking out a loan, be sure you understand what the deal means for you, in particular:

• read the terms and conditions, including the small print
• what is the interest rate?
• what would happen if you missed any of the repayments due on your loan?
• what would happen and how much would it cost if you wanted to repay the loan early?

Resist any pressure to agree on the spot. Go away and think before signing anything. Can you afford the loan, and the other costs of buying and looking after your home? What would happen if you lost your job, or fell ill? If you are buying a flat or maisonette consider the service charges you will have to pay as a leaseholder. These could be substantial.

Make sure the property you want is mortgage worthy

Even if you don't need a mortgage yourself, it is worth checking if your local banks and building societies will lend on the type of house or flat you are buying. For example, some banks and building societies don't like giving mortgages on flats in high-rise blocks or in blocks of non-traditional construction, or on properties on large or run-down estates. You might find it difficult to move on later if people wanting to buy your home cannot get a mortgage. 

Fees

Be aware that most mortgage companies will charge you fees for arranging a mortgage with them - this includes a property valuation fee and, if applicable, a Mortgage Indemnity Guarantee (MIG).

Are you having problems keeping up payments?

As the mortgage is secured on your home you must keep up payments or you may lose your home.

As soon as you realise you have a problem, contact your mortgage lender and discuss the situation with them. They may be able to help in a variety of ways, for example, by reducing or suspending payments for a short period or extending the mortgage term.

You can also get help from the advice services listed below, particularly if you have multiple debt problems. Some lenders automatically refer you to a debt advice service. The important thing is to take action as soon as you can.