Our Blog
The pros and cons of buy-to-let investments
Author: Dave Mills
Buy-to-let property investments are a popular choice for people who want their money to work harder for them. But, like any investment, there are advantages, disadvantages and risks associated with entering such a venture. Tax, legal requirements and maintenance are all important considerations. After all, you want to go into any major investment with your eyes open. That’s why we decided to take a closer look at some of the main pros and cons of becoming a landlord.
Read moreWhat affects my credit rating?
Author: Dave Mills
Your credit rating is incredibly important. That’s because it can directly affect how you live your life. It can determine whether you can buy a house, a new car, a new kitchen, pretty much everything you might need but can’t afford to buy outright. But what factors determine whether your credit rating is good or bad? Well, here are the answers to some of the most frequently asked questions.
Read moreWhat does APR mean?
Author: Simon Ellis
APR. It’s those three little letters that follow a stated percentage on any sales pitch offering you credit. APR is associated with loans, credit cards, store cards, car finance, as well as many other financial products… But what does it mean? Well, look now as we explain APR and give you some tips about the way it works so you don’t end up paying more than you should.
Read moreWhat is Stamp Duty and how does it work?
Author: Simon Ellis
Stamp duty is a tax on buying a house and it’s a major source of government income. Nowadays the rate at which stamp duty is charged goes up in increments depending on the value of the property you’re purchasing. In this way, it works a bit like income tax, with various thresholds after which you’ll have to pay more. Here we look at some of the most important characteristics of this levy on home ownership…
Read moreWhat’s taken the spring out of the Spring housing market?
Author: Dave Mills
Traditionally there’s a significant bounce in the housing market during the Spring. More mortgages are usually agreed, and more sales are normally completed in the three months to May than in the preceding quarter of the year. It’s just the way it’s been… But this year’s different, which isn’t ideal for people like us who work in the personal finance sector providing products like mortgages. And you’re odds-on to have already guessed why…
Read moreHow does the value of the pound affect me?
Author: Dave Mills
The value of the pound in our pockets has far-reaching consequences for our personal finances and day-to-day life, particularly over time… Sterling, as it’s known, is subject to the same fluctuations in value as any other major currency. So what causes rises and falls? And what are the results of these changes? This month we examine these seemingly complex questions by breaking them down into a few straightforward ideas…
Read moreHow does inflation affect me?
Author: Dave Mills
This month’s news that UK inflation is below the level predicted is positive for people everywhere. When combined with recent evidence of wage growth, it means your money’s going further than it may have done in the recent past. In short, it means people in the UK can afford to enjoy a higher standard of living – something that we must all welcome… But what determines the rate of inflation, why is it important and what does the future have in store?
Read moreHas the UK housing market peaked?
Author: Dave Mills
As we enter 2019 there are contrasting reports about the state of the UK housing market. On one hand, December 2018 recorded the slowest annual growth rate since 2013. However, mortgage lender Halifax has since predicted a swift recovery in 2019, with annual increases in house prices of up to 4%. So, is the stagnation over? Will 2019 see a return to house price growth above the general rate of inflation? Or are we on the verge of a major house price crash? At Compass we don’t have a crystal ball, but we can add context to help you interpret the situation more accurately. Here’s what you should know…
Read moreWhat’s the difference between the main types of mortgage?
Author: Dave Mills
First time buyers, in particular, are often uncertain about what kind of mortgage is best for them. This is perfectly understandable. After all, there are many different products available from a broad spectrum of lenders. Each option is likely to have advantages and disadvantages for you as a home buyer. The aim is to strike the best balance to serve your ongoing interests. Here we examine the unique features of some of the most popular mortgage products on the market today.
Read moreWhat are interest rates? How do interest rates work? Will interest rates go up?
Author: Dave Mills
Whether interest rates will change is always the subject of intense speculation by ordinary people as well as financial analysts and commentators. That’s because so much hinges on even the smallest adjustment. Whether you want interest rates to go up or down normally depends on whether you are a saver or a borrower. Here we look at rate-setting dynamics, recent UK interest rate history, and report on what’s likely to happen in the short-to-medium term.
Read moreWhat does the budget mean for people’s personal finances?
Author: Dave Mills
The Chancellor Philip Hammond made headlines with his latest budget, which announced an increase in the personal income tax allowance from next April. The move, which means we all get to keep more of what we earn, was somewhat unexpected because the treasury had previously pencilled it in for the following year. As well as moving the starting point for income tax to £12,500, Mr Hammond announced he was shifting the higher-rate income tax threshold to £50,000. Workers will no doubt welcome the news, but what else was there in the budget related to people’s personal finances?
Read moreCompass expands to offer even better service
Author: Dave Mills
In order to provide you with an evermore professional, efficient and responsive service, we have recently taken on Sam Naylor as Mortgage and Protection Advisor and Nicky Ellis as Business Manager.
Read moreStamp duty removed for 80% of first-time buyers
Author: Dave Mills
The Autumn budget included the very good news for prospective home buyers, that first-time buyers will not pay stamp duty on the first £300,000 of any property with a value of up to £500,000. On a home worth less than £300,000, therefore, you’ll pay no stamp duty at all.
Read moreLikely interest rate rise means now is a good time to remortgage
Author: Dave Mills
With an interest rate rise by the Bank of England seemingly inevitable, many mortgage lenders have been removing their most attractive offers from the market. This means that if you are thinking about switching to a new mortgage, there is no time like the present.
Read moreA mortgage £100 a month less than their rent
Author: Dave Mills
Last month, I met with a young couple, prospective first time buyers, who were extremely nervous about the cost of buying a property and all of the implications of making such a purchase.
Read moreFix your rate at a (near) all-time low to avoid nasty post-Brexit surprises
Author: Dave Mills
News that HSBC and Barclays are increasing fixed rate interest levels from their all-time record lows should spur borrowers into action.
Read moreTesco Bank and HSBC create new mortgage opportunities
Author: Dave Mills
The mortgage marketplace is constantly evolving, as you know, but recent developments have been of particular interest. Tesco Bank and HSBC have recently widened their broker networks: they have chosen Openwork, through which we at Compass access mortgage products, as one of the first networks to have access to their products. Good news for Compass and our customers.
Read moreHouse price growth and interest rate reduction
Author: Dave Mills
UK house prices increased by 0.6% in August, resulting in a small rise in the annual rate of house price growth to 5.6%, up from 5.2% in July. In addition, the Bank of England’s Monetary Policy Committee’s (MPC) decision to lower UK interest rates from 0.5% to a new low of 0.25% will provide an immediate benefit to many mortgage borrowers, albeit a fairly modest one.
Read moreWho has got the best deal out of the interest rate cut?
Author: Dave Mills
These are interesting times for mortgages, particularly in the light of the recent cut in the Bank of England base rate. I was wondering who had actually got the most out of the cut the other day, when a long standing client called me.
Read moreWhat is going to happen to interest rates post-Brexit?
Author: Dave Mills
The base rate is currently at an all-time low of 0.5% and mortgage rates have never been cheaper. Prior to Brexit, the rate was likely to gradually increase to 2.25% from late 2016, but all that has changed. This means mortgage costs may go down: fixed rates have already become lower than variable rates.
Read moreThere are 50% more mortgage products than a year ago. Which one is right for you?
Author: Dave Mills
When looking for a new mortgage or a remortgage, the choice of lenders can be daunting. Do you go to your own bank? You’ve been banking with them for years, so they’ll bend over backwards for you surely, won’t they? Do you use a comparison site? All the lenders are on these, aren’t they? Nowadays, you even have the option of applying for a mortgage at your local supermarket!
Read moreA decade of change - and no change!
Author: Dave Mills
Amazingly, this is our 10th anniversary blog, writes Dave Mills. Compass started in May 2006. Both Simon and I had been employed by a large corporate company and then self-employed with a different organisation, and we decided that we wanted to offer a more personal service to customers, because we found that financial advisers did not keep in touch with their clients after the initial business was completed. Our aim was to nurture the relationships so that they would become clients for life.
Read more17 mortgage tips for first-time buyers
Author: Dave Mills
If you are a first-time buyer, you have never been through this process – the mortgage maze – before, and your head is probably full of questions and concerns. Here are brief answers to the questions we are most frequently asked by first-time buyers.
Read moreApplying for a mortgage? Max deposit or debt-free?
Author: Dave Mills
If you have credit card debt and a lump sum, is it better to pay off the debt or put the whole sum down as deposit? Many people approach their first mortgage, having saved up a lump sum as a deposit, but also having some amount of debt on their credit card or cards. Would the lender look more favourably if the card debt were repaid first or is it better to use the whole sum as a deposit?
Read moreHow to get a mortgage that forms a foundation for your overall personal finance arrangements
Author: Dave Mills
Your mortgage is probably the most important element in your personal finance portfolio. Certainly for 90% of people in their 20s to 50s, a mortgage is the major financial focus and commitment.
Read moreWhy it’s important to use a local mortgage advisor
Author: Dave Mills
You can source mortgage advice in so many different ways – from the internet, from your bank, from your estate agent – but we would suggest that you can’t beat talking to a local mortgage specialist – and get the right advice on Southampton mortgages from a Southampton mortgage advisor.
Read moreWhy not get in touch today?
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