A generation ago a mortgage was simple. Borrowers could choose from a few banks and a couple of building societies who all offered a plain vanilla product. Today there are over a hundred diverse lenders offering a wide spectrum of products.
A decade ago the interest rate offered by a lender were the same for ‘owner-occupiers’ and ‘investors’ and for loans with ‘principal and interest’ or ‘interest-only’ repayments. Back then it didn’t matter if the borrower had a 5% or a 50% deposit – the interest rate was set. Today all these factors can have a significant impact on the interest rate applied to your debt. There are other factors beyond interest rate in determining which loan is suitable for you … but interest rate is usually paramount.