There are many different types of mortgages:

Capital & Interest

If you choose this type of mortgage the monthly repayment includes interest and capital so at the end of the term when you have made all the repayments the loan is fully repaid.

Interest Only

If you choose this type of mortgage the monthly repayment pays the interest only, therefore you need to make suitable arrangements to pay off the capital sum remaining at the end of the mortgage term, examples would be ISA's, sale of house or other investment vehicles.

Variable Rate

The rate of interest is variable and can vary from time to time for the term of your mortgage, usually as the Bank of England base rate changes.

Fixed Rate

The rate of interest is fixed for a specified period then a variable rate (your lender's current variable rate) applies thereafter.

Discounted Rate

The rate of interest is variable less an agreed discount for a specified period then a variable rate (your lender's current variable rate) applies thereafter.

Capped Rate

The rate of interest is variable but will not rise above an agreed level for a specified period then a variable rate (your lender's current variable rate) applies thereafter.