News headlines, social media posts etc re rates are always going to make people feel twitchy - understandably. When things like this feel out of our control, it can help a bit to try to take a bit of control back. You can’t change the situation, but just try to feel as though you’re managing it as best you can. I’d suggest:
Most lenders will let you find a new deal 6 months in advance, so seta calendar reminder for 6 months before your current rate is due to expire.
On that date, go to your current lender’s website and input your relevant data. Select the best option and “book” that deal.
With most lenders, you can then keep an eye on rates and, if they drop, you can cancel your new deal and reapply for a better rate. Make sure you check their terms re timings for cancelling/reapplying (usually allow a good 10-15 days).
If, for any reason, you miss the 10-15 days and a better rate is available, don’t panic. You should still be able to book it. It would just mean that you’d spend one month on their SVR before your better fixed rate kicks in.
If you’re looking at the whole market for a new fix, rather than your current lender, make sure you look at the numbers closely. I’ve often found that I could shave off a fraction of a percentage by moving to another lender. But this would mean full financial checks, a new valuation, etc. So, in the long-run no real savings and more hassle.
If you’re hoping to make overpayments at any point, do check the terms. For example, Nationwide allows 10% annually of the ORIGINAL amount borrowed, some lenders only allow 10% of the current balance.
Brokers can be a help, but I find that unless you’re a FTB or navigating your first re-fix, then it’s often easier to do it yourself.
Also, pay attention to LTV bands. The lower your LTV, the more access you have to better rates. However, once you reach 60% or below LTV then you are already seeing the best rates available - anything below that does not earn you extra brownie points.
With regards to overpaying vs savings, definitely worth plugging numbers into online calculators - due to the way interest is applied for mortgages vs savings.
Anyone looking to get out of a deal early to secure a new fix now. Really look into the numbers. Usually, you can’t add an ERC onto your new deal - you need to pay it upfront. So look into whether the cost is worth it over the term of your new fix.
If you’ve got a couple of years to go until your current fix finishes, do some calculations as to what you’d be paying today with your current lender. With the additional monthly cost, look into putting that amount (or even half of that) into a savings account - that way, you get used to budgeting for it slightly and you build up a buffer of savings in advance of your renewal date.
My last observation is that I’d probably be avoiding some of the less well-known lenders if I was due to renew soon. That’s probably me being over cautious, but the collapse of energy companies has probably altered my view!