What most people who borrow money seldom realize is that the actual cost of borrowing can be tremendously high. This is not to say that certain kinds of loans are not essential to establishing a reasonable quality of life. We all need help from the bank for purchases of homes and automobiles. But we still must be aware of the actual cost for these purchases as opposed to the perceived cost. Go to CreditChoices.co.uk and try out either the free mortgage calculator or remortgage calculator. With this simple tool you will find that even at a relatively low rate of interest a house with a £120,000 mortgage ends up costing over 200,000 pounds before it is paid for. In most cases interest paid over the life of a home loan is greater than the original purchase price altogether. Unless one has the capital beforehand they have no choice but to pay the monthly stipend. Still there are a few things one can do to drastically decrease the overall amount of interest paid over those 25 years of payment. First, avoid such financial instruments as 100% mortgages. Every Pound you finance costs you two in interest over the course of the loan, so save up a reasonable deposit. Second, compare your loan against several large lenders, a difference of as little a quarter of one percent can equal thousands of pounds saved. Also, consider taking out some form of Mortgage Protection, especially given the current financial climate.