Split - With a split loan, it is a way of having the best of both worlds! Are you unsure as to whether interest rates are going go up or down? Then you can choose the split loan of your choice. With this type of loan, you choose how much of the loan to fix and how much you would like at a variable rate. Your home loan your choice! The benefits of the split loan are that you can lock in or fix part of your interest rate to safe guard against rises. Part of the loan can be left at a variable rate making you less vulnerable if the rate reduces but allows you to make extra repayments. The pitfalls are you may be charged set-up fees, account keeping fees and discharge fees on both the variable and the fixed portions. You may be charged for making higher repayments on the fixed portion. You may not benefit much from any changes to the interest rate.