Looking to remortgage and add a bit on for home improvements.
The best no strings attached deal is 4.69% and adds an extra 100pm interest for the home improvements.
However, going to a 2-year discount with a 3-year tie-in with early repayment charges may work out better?
If I go for a 2-year 2.2% fixed deal, I save 200pm even with the home improvements loan added. I just save away some or all of that 200pm for 24 months and use it to pay the early repayment charges.
According to the lender's website, if I get out right at the end of the
2-year discount the penalty is "a % of the amount repaid and will be: 6% between 01.08.07 and 31.07.08". I assume that means 6% of the previous 24 monthly payments which is 0.06*24*248 = 354 which sounds too low for an early repayment charge considering I can save 200pm on the deal?
Have I miscalculated somewhere?
Thanks for any comments,
Roland.