Simply put is splitting your loan into two or three [or however many splits you require].  Splitting is very good for cautious lenders who may want to fix half their loan while keeping the other half variable.  This gives the consumer security that the fixed portion repayments will stay the same while the variable portion will reduce should the interest rates drop during the term of the loan. 

Also some investors who use their owner occupied home to secure a deposit for an investment could add a split to keep the two loans sperate for accounting purposes.

f you choose this option some lenders may charge a split fee or set up fee to structure your loan this way.