Perhaps it would be a better world if mortgages were as simple in reality as they look to be in principle. Choose a house, borrow some money on it, buy the house, settle back and send a little bit of the loan back each month until it has been paid off. But whatever would or would not be better, mortgage customers face an assault on their mental faculties when they come to choose a mortgage. Even after working out whether they would like the security of a fixed rate mortgage, or the potential savings of a tracker or variable mortgage, and how much they can afford to pay back each month, there is the question of repayment type.

But in a housing market that, despite recent falls, still remains tantalisingly too expensive for many first time buyers, every tool that can help someone get their foot on the housing ladder should be welcomed with open arms. Here's a look at the different types of mortgage repayment, and how they can help or hinder the borrower:

Interest only repayment:
A popular choice in a rising market, interest only mortgages have funded many of the mini property empires that fuelled the housing boom. Only the interest on the loan is paid each month, and at the end of the term the borrower is expected to pay the full balance of the loan. Usually this would be done by selling the property, which had hopefully risen in value. The advantage to struggling first time buyers is that the monthly repayments are substantially less on this type of mortgage. But the risk of not putting any capital into the property by only paying the interest has potential consequences.

Make a Chart of Other Visual Aide
For those who need to see where their money is going, try creating a pie chart. Use colours for the specific bills and debt you have. It is particularly important to note the difference between essential outgoings, such as personal loans that need repaying, and non-essential outgoings, such as leisure activities and entertainment.

Repayment mortgage:
The most common mortgage, a repayment mortgage sees the monthly instalment pay off some of the interest on the loan and some of the loan itself. The advantage is that the borrower is steadily building their equity in the property, and will own it outright at the end of the term. Monthly repayments will be higher, but if the borrower can afford it, definitely the best type of mortgage.

Part and Part:
A combination of the two repayment methods mentioned already, a part and part mortgage allows the borrower to specify what proportion of the loan will be repaid on a repayment basis and pay off the remainder on an interest only basis. Many large lenders, such as Alliance and Leicester, now offer these mortgages, as they are a good way to reduce monthly payments while keeping the balance of the loan ticking down.