With so many mortgages to choose from, how do you find the cheapest?

What kind of mortgage are you looking for? The answer is probably: the cheapest mortgage. Finding a cheap mortgage is easy enough, but finding the cheapest one means a bit of digging. It helps if you've already got money in the bank, too: rates drop dramatically if you can stump up a decent deposit.

When you're looking for the cheapest mortgage available, it's a good idea to think about the type of mortgage you want and how much you want to borrow: different types of mortgages are cheaper than others, and the bigger your deposit the lower the interest rate. If you want the cheapest mortgage, borrowing less than 85% of the property price and choosing a variable rate or tracker mortgage is a good bet. Fixed rate mortgages are more expensive, and if you borrow more than 95% of the property value the rates go into orbit.

Now, find the cheapest mortgage provider. There are three things to consider: the interest rate, the additional costs setup fees and so on and any penalties. If you're planning to switch providers in two or three years, the cheapest mortgage might be the one with the lowest penalties for switching.