In principle, a mortgage can always be split into tranches with different terms and interest rates. This only makes sense, however, if you wish – within the foreseeable future – to pay off a tranche that will fall due. If the due dates for the different tranches are 2 or more year parts, the current finance partner will basically be able to dictate the terms of a tranche falling due. This is because any switching of an individual tranche to a more attractive finance provider will not be possible or only at considerable expense. In addition to any splitting of the borrower’s note, the new finance provider must also expect to be treated as a secondary provider - a very unattractive prospect for any lender. We therefore recommend that any borrowing be structured as a single-tranche arrangement. This puts you in a stronger negotiating position when your loan falls due.