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I got in touch with them, and our monthly repayments of 350 are now reducing the newer balance first, meaning that we will have paid of the 700 in two months, and still have 18 months interest free on the kitchen. Took one call. Should be fixed now!

We went down this road (for an Ikea kitchen as well) when our bank didn't want to lend us any more and we needed to finish our renovation. We financed at 95% + LMI, and had a hefty personal loan on top for the reno. This way, we made sure we could do the bathroom while the house was gutted, so...