There are two main types of Mortgages, these are:
Repayment Mortgages – Where you pay back a bit of the loan and a bit of interest every month
Interest-Only Mortgages – Where you pay back the interest each month and only pay back the original loan at the end of the mortgage term.
Now, there are a few different types of mortgage deals that you need to know about:
Fixed-Rate Mortgages – These are really simple, you just pay the same interest rate until the end of the Mortgage.
Tracker Mortgages – The interest rate you pay follows (tracks) the Bank of England base rate. So the interest you usually pay is Base Rate (Bank of England) + your mortgage rate.
Discount Mortgages – You only pay the standard variable rate of the lender, with a little discount
Offset Mortgages – This uses money that you have in a savings account to reduce the amount of the loan a.k.a mortgage that you pay interest on.