Which is the best mortgage...

Is it preferable to buy an interest only mortgage or a standard repayment mortgage?

Or more to the point, what decides which of them is better for you given your own individual circumstances?

Well, generally it comes down to how much risk you want to take on and how much money you have at the time of taking out the mortgage.

Whilst with an interest only mortgage payments will tend to be lower for the first few years, at the end of the loan period you have to pay off the entire lump sum of the mortgage so there is a large risk there, whereas with a standard repayment mortgage if you successfully complete the term of the mortgage you will have paid it off and the total sum repaid is less than with an interest only mortgage.

Re : Which is the best mortgage

Yes I think it depends on your own individual circumstances, there is not one mortgage product that fits everybody because it depends on factors such as how much money you have, how much you are earning per month and that sort of thing.

For instance if you are not earning a lot at the moment but think you will earn more later on then it might be best to keep payments low initially, if on the other hand you have enough income to cover the mortgage then you may as well get one that is a repayment mortgage to save having to ultimately pay off more...