Your monthly instalments will contain two elements, one to repay interest and the other to repay some of the capital borrowed. The lender may require you to take out life insurance to cover the repayment of any mortgage outstanding.
Plus Points: This is the simplest form of repayment and reduces the amount owed to the lender with each instalment payment.
Points to Watch: Usually mortgages are taken for a period of 25 years (although you can choose a shorter period). This means that each time you move homes and re-mortgage you will be extending the period to repay the mortgage.
