Mortgages are type of loans that are taken out with the specific purpose of buying a home. There are various kinds of mortgage that you can apply for here and your repayment options may also be different depending on the lender you use and the deal you choose.

In basic terms there are two types of mortgage to choose from:

1. Repayment mortgages - with a repayment mortgage your monthly repayment is put towards paying back both the money that you borrowed in the first place and the interest that will be charged on your borrowing. So, when you have made your final payment you will own your home and you will not owe your lender any more money.

2. Interest only mortgages - with these mortgages your monthly repayment only goes to pay back the interest that will be charged on your borrowing and it will not repay the original sum that you borrowed. Here, when you have made your last repayment, you will also need to repay the outstanding balance to clear your mortgage. For this reason most people who take out this kind of mortgage will set up some kind of investment or savings product at the same time that can make this payment.

The type of mortgage that you apply for may also be dictated by your circumstances and the type of property you want to buy. Most financial institutions will have a range of specialist mortgages that you can choose from here. These include:

You will also need to decide if you want a mortgage deal in place when you take out a mortgage. These deals can be set up to last for a set period of time or for the life of the mortgage. Options here include: