I've just come to the end of my fixed period on my mortgage and as a result have dropped down to a low interest rate. We've been thinking about an extension so thought that now would be a good time to do it. However I called my lender (Direct Line) to check to see if there would be any problems borrowing and they said it would be fine and gave me these options -
2 yr fix 4.09% £299 fee
5 yr fix 5.29% £299 fee
2 yr fix 4.19% no fee
5 yr fix 5.39% no fee
After this period it goes to the standard variable rate of 4%. I (perhaps naively) assumed that I would be able to borrow at my new tracker rate at 1.5% above base rate. I didn't have time to ask about further deals or if that was possible.
Is this normal practise? Do other lenders allow you to release equity on your current rate?
2 yr fix 4.09% £299 fee
5 yr fix 5.29% £299 fee
2 yr fix 4.19% no fee
5 yr fix 5.39% no fee
After this period it goes to the standard variable rate of 4%. I (perhaps naively) assumed that I would be able to borrow at my new tracker rate at 1.5% above base rate. I didn't have time to ask about further deals or if that was possible.
Is this normal practise? Do other lenders allow you to release equity on your current rate?