There are really only 2 types of mortgages which are either repayment or interest.
This type of mortgage is calculated based on that one will pay the mortgage off in a set number of years, that is when you make monthly payments it clears some of the mortgage balance as well as the interest part. Most residential mortgages these days are of this type and around 25 years long.
These type of mortgages are calculated where you are just paying off the interest part of the mortgage. Therefore at the end say a 25 year term you will still owe the same amount as at the start when the mortgage was taken out, and require to setup a repayment vehicle such as
Today these are still popular with buy to let investors because
The disadvantages are