Opinions on a split loan? I thought my loan was going to be standard variable but just saw the paperwork and it's split (half variable and half fixed). Not sure why it's been structured this way.
Perhaps a good q for your credit advisor Like Buying a Toyota, you think u need a Tarago, but end up with a Camry, but you really need a Landcruiser. ta rolf
Who did the loan for you? Best ask that person what's going on. It's very weird to be given a fixed loan if you didn't specifically ask for it and/or sign off on it!
Yep I'm just reading it for the first time now. Not sure I understand the analogy. Is it comparable to a very ordinary deal?
Banks don't just split loans - it must have been applied for that way. Did you use a broker or go direct?
Likely no one can answer this apart from the person who set up your loan... so why haven't you asked them?
If you had read the post, mate- you might have realised the only question I asked was about opinions on split loans. I wasn't asking anyone to pull their tarot cards out. Jesus.
Haha I'll put my tarot cards away then, but my question still stands... Split loans are good for some and not for others, the question is does it suit your needs?
Do you have an offset account? The reason we have had a split loan because we also have an offset account. If we stay with all standard variable the current rates will be higher than some fixed rates. If we split the loan we can have the benefit of the lower fixed rates and the full offset for the standard variable rates.
Honestly, I don't anything about split loans. Wasn't even aware it was an option. I just wanted to know the advantages/disadvantages and what type of borrower would usually go for that type of loan structure.
They would generally split if a) wanted some variable some fixed, or b) some IO or some PI c) of a combo of the above or d) if the uses of the loans were differnent or e) if the securities were different, or f) if there are 2 borrowers who want one loan each etc
Generally someone who has some cash to park in an offset against the variable split but also wants to take advantage of lower interest rate offered on fixed rates, some view it as the best of both worlds.
When people have a loan that is 50% variable, 50% fixed, this really sounds like there really isn't much thought behind the reasons for the split loan. The structure it too generic. There's lots of ways in which a split structure can be very useful, but there should be some solid reasoning behind it (I can say that about almost everything). If it's well thought out, people would likely understand the recommendation and wouldn't even need to ask the question here.
good combo............ Im a christian and not offended, coz I learnt a long time ago to listen for understanding - not offence ta rolf
