There are advantages and disadvantages to both fixed rate and tracker mortgages and some consumers find it hard to choose between the two. In some cases, a specially designed split mortgage deal that incorporates both a tracker and a fixed rate element may be worth considering.
What are Split Fixed Rate and Hybrid Mortgage Deals?
These mortgages allow a consumer to use both a fixed rate and a tracker option on their mortgage loan at the same time. Each type of deal is applied to a specific percentage of the loan and may come with different rates.
Popular in some areas of North America, these are not yet as common in the UK, although some lenders have been willing to arrange them informally if asked. One UK lender, HSBC, has recently produced a formal split loan product.
