2. Repayment mortgage is most common type of loan. this is where the buyer pays off a proportion of the loan each month and pays interest on the remainder. All of the money goes to the lender, some repayment mortgages are flexible, which allows under- or over-payments to be made according to your circumstances.

3. Endowment and interest only mortgages are more risky. this is where the buyer pays only monthly interest charge to the lender and at the same time paying into an independent scheme intended to pay off the full amount of the loan at the end of the period. The buyer has to make up for any shortfall in value - which is more likely with low interest rates and badly-performing money markets.

4. Current account mortgage puts your mortgage, cheque and saving account into one large loan, which can be drawn from or paid into at will. Experts agree that this is the most economical of mortgages, if you are disciplined with your money.

5. Mortgages that have variable or fixed interest rate. If you have a fixed-rate mortgage you could lose out if interest rates fall; a variable-rate mortgage is where your monthly payments will depend on movements in interest rate.

6. When filling out a mortgage application form. Mortgage are signed in respect of the property, you can get an agreement in principle from a lender, the mortgage can only be formally approved when the lender has approved the property you intend to buy.

7. After approval, the mortgage lender will notify you in writing. This should take less than two weeks.

8. When you have signed the mortgage agreement, the lender will make a payment to your solicitor - you will then pay this to the vendor's solicitor once the contracts have been exchanged.

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