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Having part of your loan
at a fixed interest rate protects you
against interest rate rises
▪
Leaving part of your
loan on a variable interest rate leaves you
less vulnerable if rates
reduce
▪
Additional payments are
allowed on the variable portion of the loan
▪
You may be charged
set-up fees, account fees and discharge fees
on both the fixed
portion and the variable
portion
▪
You may be penalised for
making higher repayments on the fixed
portion
▪
You may be penalised if you pay off your
loan before the due date on the fixed
portion
Advantages
▪
Good if you are unsure of interest rate
movements
▪
Limits your risk to higher interest rates
Disadvantages
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Cost of having two loans may be expensive.
You may consider a
professional package
▪
If rates decrease you may miss out on the
savings on the fixed portion
To find
the best split loan options please contact
us or apply for a quote below
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