Question 1

How is a split mortgage different from refinancing?

Accepted Answer

Refinancing means replacing your loan with a new one from a different (or the same) lender. Splitting means dividing your existing loan into multiple components within the same facility. You can refinance and split at the same time, but the two are separate decisions.

Question 2

Can I add or remove components later?

Accepted Answer

Most lenders allow you to restructure components during the loan's life, though fixed components may carry break fees if changed before the fixed term ends. Talk to your adviser about timing.

Question 3

Should overpayments go to the highest-rate component first?

Accepted Answer

Mathematically, yes — paying down the highest-rate component first minimises total interest. Some borrowers prefer to spread overpayments evenly for behavioural reasons. This tool lets you model either approach.

Question 4

What is a blended rate?

Accepted Answer

A blended rate is the effective combined rate across all components, weighted by principal. It's a useful single number for comparing one structure to another, but the real cost still depends on the mix.

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