Time to remortgage - fixed or tracker

Slappermum

My 2 year deal (95% LTV, 2.99%) is coming to an end in 3 months. The lender is offering several options, the only ones worth considering are:

2 year fixed at 2.69% with £999 product fee - total cost over 2 years £23,311, remaining balance after 2 years £223,615
2 year tracker at 2.69% + BoE base rate (so 2.79% currently and I don't see this going up significantly any time soon) with £999 product fee - total cost over 2 years £23,610, remaining balance after 2 years £233,779. No exit fess.

I could shop around with other providers, but none seem to be offering anything significantly better at 85% LTV.

The rates for 80% LTV seem significantly better. I was thinking of going for the tracker for another 6-12 months to get my LTV to 80% through a combination of overpayments (been doing this regularly anyway) and increase in property value and then fixing at something a lot closer to 2%. Affordability/job security not an issue. Obviously, if 85% LTV rates drop in the next three months I would consider those.

 Please point out the flaws in my logic. Cheers!

ukri

If you are certain of moving to an 80% LTV band in 6 months, then why not switch to a zero fee zero ERC tracker like the Nationwide one. Nationwide always has rates close to the best, so you could just switch rates when it’s time.

getmore4less

track and fix might be an option if you can get to 80% and a much better rate
You need to look at the no fee rate as well to crunch that over 6-12 months not the 2 years 

something does not look right with those numbers
I suspect you have a typo for amount left after 2 years on the tracker £233,779. 

edit:
Just realised I got those examples wrong for the end amounts taken them out

Slappermum

@getmore4less Yes, that was a typo, was meant to say £223,779. Basically, minimal difference between the two, but the tracker offers a lot more flexibility. No fee rates offered to me by my current lender are all at 2.99% and come with a 3% ERC so not really worth considering imo. 

@ukri Shopping around for a 0 fee tracker with other providers is definitely an option, good shout!