The second major decision that everybody who takes out a mortgage must face revolves around the method by which the loan is to be paid back.

Picking the right repayment vehicle is incredibly important and as ever, there are numerous choices and decisions to be made that should take into account your personal circumstances, needs and attitude to risk.

The first decision is whether you want a repayment mortgage or an interest-only mortgage.

If you choose a repayment mortgage, then part of your monthly repayment will go towards servicing the interest on the loan, with the remainder used to reduce the outstanding debt.

If you go for an interest-only loan, your monthly repayments will be solely made up of interest on the sum of money loaned to you, while your mortgage debt will stay at the same level for the entire term.

This form of mortgage requires you to select some form of investment product to accompany your mortgage and enable you to repay the sum borrowed at the end of the mortgage term. Mortgage lenders will give you anything up to four choices:

• Endowment mortgage
• ISA mortgage
• Pension mortgage
• Standing mortgage

There is no universally 'best' way to pay back your mortgage debt, other than by making sure that you keep up your monthly payments and avoid any risk of losing your home. You should think carefully about the options open to you, and consider how your circumstances or needs may change over time before making your decision.