In an interest-only mortgage, you pay the lender the interest on the borrowed amount without making repayments on the principal loan sum. This implies that you have fulfilled the interest obligations to the lender; however, the principal amount remains unpaid and will need to be repaid in the future.
Repayment mortgages represent the most prevalent form of mortgage. Monthly repayments are made to your lender, covering both the capital and interest, spread over the duration of the loan term.