You pay off the interest and part of the total loan each month with repayments, usually over a set term.
Interest Only Mortgages
Your monthly repayments cover the interest of your mortgage, the full mortgage balance is due at the end of the borrowing term.
Fixed Rate Mortgages
The rate of interest stays the same for a set period of time, handy for people who want to plan their repayments over a long period of time.
A flexible mortgage is just that; it may allow you to overpay, underpay, or pay back lump sums depending on your needs.
The rates you pay are linked to the Bank of England base rate for mortgages. If the Bank of England rate falls, your rates will too. If they rise, however, yours will also rise.
Discount Variable Mortgages
This kind of mortgage will usually have a discount offer for a set time at the beginning of your mortgage.