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You repay part of the amount borrowed together with the interest charged each month. In the early years most of your payment is interest; towards the end of the term the balance flips, with most of each payment reducing the amount borrowed. Also known as capital and interest mortgages.

You pay only the interest each month, so payments are lower — but the amount borrowed is still outstanding at the end of the term. You'll need alternative arrangements in place to repay the mortgage, such as an investment vehicle, to avoid the property having to be sold.

The security of knowing your monthly payments stay the same. You pay a fixed rate of interest for a set period — typically 2, 3 or 5 years — so you know exactly what you'll pay each month, even if interest rates change.

Payments change when interest rates rise or fall, usually linked to the Bank of England base rate. Trackers typically offer an initial incentive period of 2 or 3 years at a small percentage above the rate being tracked, then continue tracking at a larger margin.

Take the rough with the smooth: payments should rise and fall broadly in line with Bank of England base rate changes, though not necessarily at the same time or by the same amount. Most borrowers move to their lender's SVR when their initial incentive period ends.

You know the maximum you'd pay during a set period, typically 2 or 3 years. The rate varies in line with interest rates but will not exceed a specific upper limit — the cap — combining the behaviour of a variable rate with security similar to a fix.

A discount on the lender's standard variable rate. If the SVR is 3.5% with a 1.5% discount for 2 years, you start at 2.0%; if the SVR rises to 4.0%, you pay 2.5%. Typically, the shorter the discount period, the larger the discount.

Your savings are offset against your outstanding mortgage. Your current account, savings account or both are linked to the mortgage, and each month the balance in those accounts reduces the amount on which interest is calculated. You're unlikely to earn interest on the offset savings.

Great if you have a variable income. You can vary the amount you pay each month, take payment holidays in some circumstances, and may be able to reduce your mortgage with lump-sum payments without incurring an early repayment charge.