What types of mortgage are there?
A repayment mortgage will repay the outstanding balance over the
term of the mortgage. As long as you keep up with your repayments over the term of the mortgage you will repay the mortgage in
full by the end of the term.
An interest only mortgage is where you only pay the interest on the loan over the term
of the mortgage. That means at the end of the term you will still owe the lender the original capital borrowed.
Part and part
A part and part mortgage is where you have part of the mortgage as a repayment
and part as an interest only. In this instance by the end of the mortgage term you will have repaid the repayment
portion of the mortgage but still owe the lender the capital you only paid the interest on.