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Investment Vehicles
 

If you choose to take out an interest only mortgage, you will need to invest money to make the capital for your mortgage. Investment vehicles are held by companies who place your monthly contribution into the stock market with a view to earning a proportion of the capital repayment through growth.

There are three different ways of investing for an interest only mortgage:

Endowment Policy you use an investment into an endowment policy to pay off the capital
   
ISA use an investment into an ISA to pay off your capital
   
Pension Plan a tax efficient but non flexible option to pay back your capital

 

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