When we take on our first mortgage (in French meaning death guarantee!) it is a huge step in our lives and one that we could well still be paying thirty years later. Some people thrive on the challenge, others fail to maintain the repayments and have their homes repossessed whilst the majority continues to plod through their lives moaning about their repayments but contented to be home owners.

When you start thinking about buying you'll need to study the market to know what you can afford. We all want the prettiest house which is probably just a little too expensive. Look at the long term vision. Why are one house likely to appreciate much more than another? Make decisions through your head rather than your heart! Whilst you're looking, take time to give yourself a budget and to start saving. If in doubt, always buy into a location rather than the specification of the property.

It's also worth having a survey completed on the property. Even though it can be expensive, it's much better to know before the deal is completed and you're committed. It is possible on some properties to have a one hundred per cent mortgage and because competition is now so fierce it's actually possible to negotiate a one hundred and twenty five per cent mortgage which will give you spare money to carpet and furnish the house. You have to be careful, however . The chances are that the interest will be higher and the property will have to be perfect (probably a brand new build). You'll also be required to sign a Mortgage Indemnity Guarantee (a MIG) which will add a percentage on to your repayments and needs to be weighed up against the opportunity to get onto the housing ladder.

Make sure that the monthly repayments are clearly explained to you and that you feel comfortable that you can live on what you have left after your repayments. You'll have all the day to day bills; rates, electricity, gas, phone , water etc. and these are sometimes swept under the carpet by companies who are desperate for you to buy their properties. You'll be given the choice of either a fixed term or a flexible mortgage. A fixed term will probably charge you a slightly higher interest rate but you know that this will be your repayment for the length of the fixed term. With a flexible loan you could well start off with a good deal, but, depending on where the markets go, you could be left vulnerable.

Look around and ask lots of questions. There are so many companies offering so many deals that sometimes it can be too much to take in, but try. A good deal could save you thousands and thousands of pounds. In addition, find out if there are penalties if you decide to change to an alternative lender before the term finishes.

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