The first thing to do is to work out exactly how much you can afford each month for monthly repayments. While mortgage providers tend to lend around 3-4 times your annual gross salary as to how much you can borrow, the real factor is affordability. On paper you may look like you can afford a ?150,000 house for example, but this does not take into account the fact that you may have lots of other commitments which could leave you financially overstretched.

Work out your monthly budget, allowing for house-related costs such as insurance and general upkeep, plus food, entertainment, car costs, savings, utilities, other debts etc. The chunk of change you have left over should be the very maximum amount you can afford to pay out each month for a mortgage.

Once you know how much you can realistically afford, then shop around. There are literally hundreds of mortgage products and lots of great deals available, so you don't have to pick the first one that comes along.

Using the internet is the best way to find lots of mortgage information quickly and easily, allowing you to compare terms and conditions and therefore finding the best deal.

If you are looking at a fixed or discounted rate, check out whether you will be tied in to the mortgage lender after the special period ends. Many will charge you a financial penalty if you try to change to another provider within a specified period once the ?honeymoon? period is over.

Check out what fees are charged. Some mortgage companies will offer you incentives to take out a mortgage with them, such as free conveyancing - which could save you pounds - or no administration fees.

Finally, check out the small print - many mortgages can look good on the surface but additional costs can be hidden away in the terms and conditions.

Questions to ask a lender before taking a mortgage

So, you have found a mortgage you like the look of. The next thing you need to do before making an application is to make sure that you really are getting the right deal for you and your circumstances.

These are the sort of questions you need to ask a mortgage lender before you apply:

1.How much are your administration fees? Admin fees are costs associated with your mortgage application that you will need to pay, for example, an application fee. These fees vary from provider to provider, and some will waive them as part of a deal, so don't pay out more than you need to

2.How much is the valuation cost? This is the cost of having your potential new home valued. The mortgage company instructs a surveyor to go out and value the house to ensure that it is worth the mortgage amount

3.What will my monthly repayment be? Ensure that you really will be able to make the mortgage repayments comfortably

4.Is there any flexibility in the mortgage payments? Some mortgage companies offer repayment holidays, or allow you to make an early repayment without charging you any financial penalties. Am I able to make an increasing repayment so that I can reduce the amount of interest charged? Or a lump sum repayment, without incurring any financial penalties?

A mortgage is big financial commitment, so it is important that you take out the time to ensure that you get the right deal for you.