There are 2 main methods :
You only pay the interest charged by the lender on the mortgage and you will still owe the full amount you borrowed at the end of the term. You will need to pay into a savings plan such as an ISA, endowment policy or pension so that you accumulate sufficient savings to repay the whole amount at the end of the agreed term. The majority of lenders restrict the amount you can borrow by this method to 70% or 75% of the property value.
Repayment or capital and interest
Your monthly repayment is made up of the interest and a portion of the capital so that at the end of the term you will have repaid the total loan.