This paper presents a mobility management scheme that combines host-based routing (HBR) with prefix routing to achieve balanced loading of network nodes in a distributed hierarchically arranged mobile IPv6 access network. This allows the higher-level nodes to be less loaded than in pure host based routing schemes, where the root node presents a capacity bottleneck to the system. As a result, this scheme achieves good savings in memory by reducing host-specific caches, and thus enhances network scalability. A direct consequence of reduced database entry is reduced processing latencies at the nodes, which reduces delay and improves on network performance. Our hybrid HBR scheme performs better than the pure HBR schemes in memory conservation and increased network capacity.