With a repayment mortgage no additional investment vehicle is needed so you will probably be required to take out an insurance policy to protect your mortgage payments. This may be a good thing though because investment vehicles carry risk and many have fallen short in the past. It also means that you are guaranteed full ownership of the property at the end of the mortgage term, providing you have kept up your monthly repayments.

With a repayment mortgage you will also have to decide what sort of interest rate you are going to pay unless you just get the variable rate that comes as standard with most mortgages. The following interest rates are available in the UK:

• Fixed
• Capped
• Tracker
• Discount
• Deferred