Not so long ago, the main two decisions that borrowers faced were a) do I want an interest-only or repayment mortgage? and b) do I want a fixed or variable interest rate? Today, this is just the tip of the iceberg. " It's more complicated than it used to be," says Sue Anderson of the Council of Mortgage Lenders. "On the one hand, that makes it much more difficult, but on the other, if you do make the effort to shop around, you're more likely to get a deal that suits you better. I don't think it's beyond the wit of confident consumers to do that."

The main additional complication these days is the introduction of many more fees ? some of which can be substantial. As a result, the loan with the best headline rate is often not the best deal. David Hollingworth of London & Country, the fee-free mortgage broker, points out that Northern Rock alone, for example, has five different main types of two-year fixed-rate mortgages ? each with a different fee and different interest rate. The rates may also change again depending on how much you're looking to borrow in relation to the value of your property ? known as the loan to value (LTV).

Melanie Bien, a director at independent mortgage broker Savills Private Finance, says the increasingly complicated nature of the mortgage market is good news for advisers.

"The easiest way of getting the right deal is to use an independent mortgage broker with access to all the deals on the market," she says. "They will look at your circumstances, establishing what you can afford, before recommending deals suitable for you. It takes all the hassle out of doing it yourself, plus, because their job is to deal with mortgages all day, they will know the ins and outs of the market, the most competitive rates, the lenders most suitable for your particular circumstances, etc."

Even if you're using a broker, however, it's well worth getting a good understanding of the different packages available before you sign up to a mortgage. And if you're thinking of skipping the middleman altogether, it's even more important to do some thorough research

INTEREST ONLY OR REPAYMENT?

While interest-only mortgages may seem like a great way of making your home purchase more affordable, these are a much more risky option than taking out a standard repayment loan ? which will pay off some of your debt, as well as the interest, each month.

Ray Boulger of independent mortgage broker John Charcol, says that if you are considering taking out an interest-only loan, it's very important to also start a savings plan ? to ensure you are able to pay off the capital at the end of your mortgage.

Although he believes repayment mortgages are more suitable for most people, Boulger concedes that they can make sense for disciplined young professionals whose income is set to rise quickly over the next few years. But for most people, they are best avoided.

TO FIX OR NOT TO FIX?

Deciding whether to opt for a fixed-rate mortgage depends on the flexibility of your finances. Boulger says that people who can't afford to take a chance on interest rate rises, and need the certainty of having the same mortgage repayments every month should certainly opt for a fixed rate.

However, he says that for those with a little more financial flexibility, variable-rate mortgages are now looking attractive. "The markets are already pricing in a rise in interest rates to above 6 per cent, so if you buy a fixed-rate mortgage today, you're not protecting yourself from rate rises unless interest rates go above 6.25 per cent, which I think is highly unlikely," he says.

"On that basis, I'd be far more inclined to go for a tracker. The best have rates which come in at 0.25 per cent below the best fixed-rate deals."

If you're looking for an even cheaper initial rate, consider a discount mortgage. Newcastle Building Society offers one of the most competitive deals at the moment, with a discount of 2.69 per cent for two years on its standard variable rate (SVR) ? currently 7.59 per cent.

However, Boulger warns that SVRs may increase faster than base rates, whereas tracker mortgages will only ever rise directly in line. He adds that buyers signing up to discounts should be careful to check whether their lender has raised its rate since last week's base-rate rise ? some take several days or weeks to increase their rates.

Remember that if you do go for a fixed rate, there will be penalties to pay if you need to sell up early. The Government announced this week that it wants to find ways of making more people take out longer-term fixed-rate mortgages ? to lessen the UK's sensitivity to short-term interest rate movements. However, Hollingworth warns: "Most people don't know what they're going to be doing in 10 or 25 years' time, and if their plans change and they need to get out of their mortgage, they'll be forced to pay exit penalties. It's worth thinking very carefully before tying yourselves into a long-term deal."

BEWARE THE FEES

Fees are what have made mortgages most confusing over the past few years. While most used to come with modest arrangement fees of a few hundred pounds, many lenders will now charge anything from zero to more than £2,000, and may also levy additional charges for everything from looking after your property deeds through to transferring your money.

To work out which deal is best for you, you need to look at the total cost of each mortgage over the period which you're tied in to. "Some of the cheapest rates come with the highest fees but that isn't necessarily a bad thing ? it may be worth paying the fee to get the rate, depending on the size of your mortgage," says Bien.

One common charge to watch out for if you're a first time buyer is the " higher lending charge". Several lenders charge these on loans that represent more than 90 or 95 per cent of the property value.

FREEBIES

All mortgages require the help of a solicitor, and lenders will also want a valuation carried out on the property. Many mortgage companies pay for these as part of your deal. But if they don't, it's worth remembering that valuation and solicitors fees will set you back at least £500 ? and often much more.

Some mortgage lenders go for much more elaborate freebies to try and rope you in. "If something looks too good to be true, it usually is," warns Bien. "Some lenders have given away plasma TVs or even cars to encourage borrowers to take out their mortgages, but you are likely to pay for these somewhere down the line. If the lender is offering any incentive to take out a mortgage, work out the cost of this perk when comparing the mortgage with what else is available to see whether it is worth your while opting for that deal."

To find a mortgage broker in your area, visit www.impartial.co.uk. SPF (www.spf.co.uk) and L&C (www.lcplc.co.uk) both offer national services. To buy a mortgage online, visit www.charcol.co.uk or www.mform.co.uk.

'I opted for a fee-freebroker'

Andrew Chamberlain, a 43-year-old salesman from West Pinchbeck in Lincolnshire, decided to use a broker for the first time when he needed to remortgage his house this summer.

In the past, he had simply taken out a loan with his local building society. This time, however, he was keen to find a deal that was both low in charges and did not come with too many tie-ins ? so he got in touch with the fee-free broker London & Country.

"I was a bit sceptical at first," he says, "as you do everything down the phone, so you're dealing with a faceless person. But when they recommended me a deal with Market Harborough Building Society, I did some research, and I was happy that it was the best rate for me."

Chamberlain was attracted to Market Harborough's deal ? which is a 2 per cent discount for two years, on the building society's SVR of 7.5 per cent ? as it included a free valuation and free legal work and had no additional charges.

London & Country charges no fees, taking a commission from the lender instead.

"If you're paying out £800 or more in fees, then if you look at the total cost over a 24-month period, it can work out that you have ended up paying more, even if you've got a lower interest rate," Chamberlain says. "And there's exit penalties to think about, too."