Remortgage advice/doublecheck please

1jim

Hi All
I wonder if anyone could check over my thinking and offer advice please

currently outstanding mortgage of £40k and have 8 years left to clear. monthly payments are £471.82 and we overpay by £60 a month (so total = £532) - current mortgage is on svr at 2.75%
current value of house is £200,000

thinking of changing to a 10 year fix at 2.39% (no fees)- and appear to have a choice of first direct or TSB

thinking of remortgaging and adding £10k for house improvements. So total would be £50k- increase the term to 10years, would make monthly payments of £469 a month. If I continue to over pay by £60 a month this would keep the payments same as I pay now £530 ish and would reduce the mortgage term by 16months.

So in essence- I could borrow £10k more, keep same monthly payment and inrease my mortgage term by 8months.

Firstly- does my maths work out (seems almost too good to be true)

Secondly- if I overpay and shorten the term of the mortgage will i be hit by early redemption penalties (I can overpay by 10% a year), or will I need to keep a nominal amount in the mortgage for the full 10year term to avoid this?

thirdly- have I just overthought this whole thing or missed anything

thanks

getmore4less

Work out what that £10k really costs.
Check if Coventry still have a 10y product, ERC after 5
Also price up a 5y fix on a lower rate.

1jim

getmore4less wrote: »

Work out what that £10k really costs.
Check if Coventry still have a 10y product, ERC after 5
Also price up a 5y fix on a lower rate.

coventry has a 10year fix at 2.29% but has a £999 fee, when added to the mortgage, I think this makes the overall repayment cost higher.
I think I would prefer a 10year fix rather than 2 x 5years (partly easier but also for the security of the whole term)