HIBOR / Prime mixed mortgage?

[sxc]

Anyone know if it is possible to have a HIBOR / Prime mixed mortgage? For example, put 50% of the principal in a HIBOR loan and 50% in a Prime loan?

This is basically hedging your bets on the mortgage.

[PDLM]

The OP means a mortgage which is in two parts: one part is based on the HIBOR interest rate, and the other part is based on the banks "Prime rate-x %" offer. I don't see how it's hedging your bets though - most HIBOR mortgages are capped at "P-x%" anyway.

[shri]

Exactly ...the HIBOR mortgages are capped. So I don't understand why you're want so split them.

[sxc]

Well everyone was saying not to take a hibor loan as the rate will go up higher than prime based loan eventually. But now that I've looked at it, the cap is now P-3% which is almost the same as a prime based mortgage.

How long do banks guarantee the p-3% cap? Is it as long as 25 years?
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[shri]

For however long your mortgage contract is.

[ArKay]

Some allow you to switch from HIBOR to P- at no cost if HIBOR goes up to your P- cap and you find you can get a better P- rate than that. I can switch once.

[sxc]

So Citibank is offering HIBOR+0.7%, capped at P-3%. 0.8% cash rebate. Is this the standard going rate at the moment?

[PDLM]

Remember that whilst HIBOR is the same for all banks, P isn't.

[sxc]

For most of the major banks apart from HSBC, P = 5.25%.

[fth]

Prime can also go up as well. The cap is a moveable feast.