What kind of mortgage do you want?
There are two basic types of mortgage. You can choose between a repayment mortgage or an interest-only mortgage with an additional savings scheme. See Before Choosing a Mortgage, What's your Budget and Finding the Perfect Home to arm yourself with the information you need to make the right choice.

Repayment mortgage
Each monthly payment partly repays the capital and partly repays the interest. Your mortgage should be fully paid-off by the end of the agreed term if you make every payment. You usually need mortgage protection insurance as well, which repays the remaining amount should you die before the end of the term.

For the first few years you'll mainly be paying off the interest, but gradually more of the capital will be paid off as the mortgage terms nears its end. These mortgages tend to be less flexible, but are good for people who like to know the set amount they will pay each month. You can also rest secure in the knowledge that the entire mortgage will be paid off at the end of the term if you meet the monthly payments.

Interest-only mortgage
Your monthly payments only cover the interest on the loan during the mortgage term, and payments into another investment plan provide the lump sum to pay off the capital at the end.

Endowment mortgages have been the most famous example of this type of scheme. Now ISAs are more popularly used. These schemes include life assurance that covers the outstanding amount if you should die during the term or the policy.