Personal Finance: Mortgages demystified

Choosing the right mortgage may seem the simplest thing in the world - until you have to take one out. While there may be 4,000 different loans out there, and one of them is almost certain to be right for you, finding it can be difficult.

This is because each us has different needs. Some of us may prefer the security of knowing that the monthly cost of a loan is pegged at the same level for several years. A fixed loan makes sense in this case. Others may want extra help to help fund furniture or decorating. Cashback mortgages could fit this scenario.

Even here the problems don't end. Should it be a three or a five-year fix? Would a discounted mortgage, which falls if interest rates do, be better? Most importantly, how do you pay it off? Are endowments, much reviled in the press of late, worth considering? What about these new PEP loans?

The Independent has published a free Guide to Mortgages, which answers the most common questions about how to get the right loan. It points out the advantages, and the pitfalls, of various repayment methods, together with a list of useful addresses and a budget planner.

The guide, written by Nic Cicutti, this paper's personal finance editor, is sponsored by Barclays Mortgages. Call 0800 585691 or fill in the coupon below to receive a copy.