A repayment mortgage uses level monthly payments that cover the interest on the outstanding balance plus a portion of the capital. Early on, most of each payment is interest; over time the capital portion grows and the balance falls to zero by the end of the term. A longer term lowers the monthly payment but increases total interest paid.

Most UK mortgages have an initial fixed or tracker period (commonly 2–5 years), after which they revert to the lender's standard variable rate unless you remortgage. Overpaying — many lenders allow up to 10% of the balance a year penalty-free — can cut the term and total interest significantly.