To arrange a loan you called in at a local high street branch and were ushered in to see the manager, a severe looking chap behind a desk in a carpeted office. He usually knew your grandfather and more about your family than you did. He'd talk about everything but the loan or mortgage you came in for, except at they very end when he'd say yes or no. A lot depended on whether he liked the colour of your socks.
How things have changed

Bank, building society or insurance company? In the past ten years many building societies have changed into banks, owned by their shareholders, not their customers. A bank distributes profits amongst its shareholders, a building society amongst its customers. Building societies do not have to concern themselves with profits, dividends and share price. On the face of it they should be able to offer lower interest rates to borrowers. Does it work that way? It's up to you, the mortgage-seeker, to decide.

Lender or broker?

A lender offers only his own products and services. A broker can scan the market place. There are many household-name lenders offering mortgages with little between them. No borrower lacks choice. A direct approach to one of them is simple and easy. Great. On the other hand, out there somewhere is a mortgage that suit your needs to a tee. Only a broker can find it.

Remember both lender and broker have vested interests. The sole lender is selling his product to the exclusion of all (possibly better) products, whilst the broker might just possibly be influenced by higher or lower commission.

Complexity

Prepare to meet it. Think hard about your circumstances and what you need from a mortgage, as well as all the implications of having one, advises Ben Clarke, a spokesman for the Council of Mortgage Lenders. You will be asked what type of mortgage you want open plan, one account, discount, flexible, capped rate, fixed rate, variable rate, remortgage, cashback, endowment - all complicated by a variety of interest rates requiring an informed view on the future of the housing market, or a stare into the crystal ball, depending on how you see it.

But chin up - most of those you'll turn to for guidance are honest professionals acting in good faith. You'll need their help.

Where to start

Try locally a mortgage broker or bank or building society in your high street, for example. A (hopefully) friendly face can help filter the hassle. The local mortgage broker may be a one-man-band offering not quite the professionalism and range of his big brothers. Alternatively, you can always sift through the Yellow Pages and start contacting mortgage lenders by phone or post. Even easier, however, is the Internet where finding the right mortgage for you can be found with a few clicks of your mouse.