Choosing a mortgage is a very important decision to make and it is important that you think carefully about repayment methods, interest rates and your needs in general before opting for a mortgage. Some lenders may have mortgages on offer that have unique features or deals attached to them but its important that you don’t let these convince you to choose that particular mortgage, your choice should be based on which mortgage suits your circumstances and property type best.

There are two main types of mortgages available and they are divided into two different methods of payment. Many people are overwhelmed by the amount of different lenders and mortgage variations there are out there, so the easiest way of choosing between them is start by looking at the two main methods of repayment and pick the one that is best for you. After this, you can then start looking at all of the different types of mortgages on offer.

The first mortgage repayment type is Repayment Mortgage. This can also be referred to as a “capital and interest loan” this is due to the repayments consisting of one part interest payment and one part capital (the debt). This method of payment requires you to pay both the interest and the capital until the whole of the loan has been paid off. The first few payments will be initially for the interest, but after time, the amount of interest will be lowered meaning that you will then be able to start paying off the capital as well.

The second type of mortgage repayment is Interest Only Mortgage. With this type of mortgage you make monthly repayments for the life of the mortgage that only covers the interest. In addition to this, you will have to pay money into a separate savings account, then when the term of your mortgage is up you can cash in your investments and use the money to pay off the loan. It is important to be careful when investing your money and to put it into a safe and recommended scheme.

After you have decided which payment method is best for you, you can then start to look at the different mortgage options that are available to you and for your specific needs. This is a good way to find something that’s more suited to you and perhaps even cheaper. One method that many people are resorting to during this time of financial unrest is to remortgage their house. Those that have done this have found that it can save them up to £80 a month.

The best thing that people can do is to search around and look into the different deals available on the market and then you can rest assured that you have the best deal available to you.

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After finding the best method of repayment, you can then start looking at all of the different types of mortgages on offer.

The second type of mortgage repayment is Interest Only Mortgage.

One method that many people are resorting to during this time of financial unrest is to remortgage their house.

Gordon Brown has today announced that Stamp duty is to be suspended for a year, on properties that cost up to £175,000 in a bid to boost the ailing housing market.

The long-awaited freeze on the unpopular levy is to take place from Wednesday.

It forms part of an emergency rescue package for hard-pressed home buyers and owners.

Gordon Brown has unveiled the flagship scheme to help people who are facing repossession stay in their homes.

The Prime Minister will hope it can tackle spiralling repossession figures and bolster his approval ratings, after Alistair Darling admitted the economy had hit a 60-year low.

Under the scheme, which will cost £1bn, vulnerable families will be offered the chance to sell their home and rent it back at a cheaper price.

They can sell the property to a registered social landlord who will clear the mortgage and then offer them a cheaper price in rent.

They will also have the opportunity to enter into shared ownership of the property.

The policy is designed to help families struggling with mortgages, but also those attempting to get on to the property ladder.

First-time buyers whose household income is less than £60,000 will be able to buy newly built properties with an equity loan of up to 30% of the property’s value.

Prime Minister Gordon Brown said: “Homeowners need to know that we will do everything we can to keep the housing market moving forward.

“Help with stamp duty, help for first-time buyers, help to build more social housing, help to take unsold properties off the housing market and help for people who get into difficulties.

“These are the things a government should do to help us come through what is a difficult situation and show that our economy is resilient and will come through these problems.”

Recent figures show that the number of homes being repossessed hit their highest level for 12 years during the first half of the year.