What's the best way to compare mortgages to find out which is the best?

There are two very important questions to ask yourself when comparing mortgages. These are: what is the interest rate, and what are the terms?

There is a massive array of mortgage choices and they all vary in their terms and conditions. So it's not just the interest rate you pay that is important. You also need to think about how much freedom you have within the mortgage and whether you can easily repay your mortgage if you want to.

Comparing the costs is made easy because all mortgage deals have to display their Annual Percentage Rate (APR). The APR demonstrates the true cost of the mortgage, including all the extra fees that are additional to the loan. By comparing the APR of one mortgage against another for the same period of time - you can see which is the better interest deal.

To compare the mortgages in more detail - look at their initial interest rate and compare it to the standard rate charged once the discount period is over.

Also look at redemption penalties. If you've got to pay a large fee to move your mortgage elsewhere then is it really worth it? Some mortgages let you move your mortgage whenever you want. So if you think that could be a consideration, you need to think about it now. Make the right decision and you'll save a considerable amount of money in the long term.

Choosing the right mortgage is a very complex decision and requires lots of experience. That's why you should always get professional mortgage advice.