Split Loans - The Best Of Both Worlds?
Split loans offer the flexibility to make extra repayments off the variable portion, while giving you the security of a set repayment on the fixed portion for the fixed loan term.
However, not all lenders offer their basic variable product as part of split loans. Some lenders only let you include their standard variable loan in a split loan. Sure standard variable loans are good, they have all the bells and whistles - which you may not need but will pay for the privelage of having available through a higher interest rate. So you may end up paying more interest with a split loan.
Lending policies vary from one lender to another. Some lenders do allow a split loan on their cheaper basic variable loans. So it's always best to talk to a broker about your scenario before signing on the dotted line with a lender, it could save you thousands.