Choosing what type of mortgage is right for you can be a daunting process. There are many lenders out there who will try to convince you of what is best for you, and friends and family will all be ready with advice. The best way to find out what could be best for you is to do your background research and consult as many sources as possible before making a decision.

While most people have at least heard of the traditional fixed rate or tracer deals, there are many other options out there, particularly if your situation calls for specialist services. If you are self employed, buying with friends, a recent graduate, in need of extra cash during this expensive time, or simply interested in what different types of offers are out there, read on.

For those who are in need of a cash injection to cover the costs associated with buying a house, a cashback mortgage is an offer you may wish to consider. Cashback Mortgages supply the buyer with a lump sum either when the mortgage is agreed or on completion.

This money is borrowed at a preferential rate and is expected to be paid back slowly alongside the mortgage repayments. Moving house is a very expensive time and a cash sum may well be needed to assist with legal fees, valuation and surveying services needed when moving house. If it is your first house you may need a substantial amount of money in order to decorate or furnish your property in addition to the typical costs associated with moving.

A disadvantage of this type of mortgage is that as you are in effect borrowing more, application fees and rates are generally higher. Also if you at some point are able to make higher repayments, there are often early repayment penalties. In some cases these early repayment penalties last for as long as seven years.

As self employment has become more common in recent years, so the self certification mortgage has appeared. This type of mortgage requires a large deposit and is ideal for those who have the cash but cannot accurately prove their earnings. It is an option favoured by the self employed, those with irregular income and those paid on commission.

In normal cases the borrower would be expected to provide accounts over three years demonstrating their earnings. However, in many cases, accounts are designed to show the minimum earnings over the three years for tax purposes. When borrowing it is desirable to demonstrate the highest earnings over that period in order to be approved. Self certification mortgages overcome this difficulty.

However, self certification mortgages are not possible for many as they often require a 70% deposit and are normally associated with high interest rates due to the risk they pose to the lender.

Graduate mortgages are, as the name suggests, mortgage deals aimed at recent graduates. Usually they have been steadily employed for over a year and have graduated less than 7 years ago.

These mortgages often include lending specifically to cover the costs of moving house such as stamp duty and legal fees.

Many banks offer fixed rates for a set period, perfect for recent graduates on low incomes. By the time the fixed rates end, the borrower is expected to be on a dramatically higher income and able to cope with the repayments still.

Graduate mortgages often lend up to 95% and it is becoming more and more common for banks to lend to larger groups of young people, with a 60% increase in mortgages taken out by groups of 2, 3 or 4 young people.