Suffolk

By Adam Aiken, editor of MyMoney24

THE news on the mortgage front has become a little gloomier in recent weeks, with the first signs that mortgage rates are on their way up, even though the Bank of England base rate remains at 0.5pc.

The Co-operative Bank has become the third mortgage provider to put up its standard variable rate (SVR), with a 0.5pc hike from 4.24pc to 4.74pc.

It means 54,000 customers will see their monthly mortgage payments increase, but with no higher savings rates as compensation.

According to Uswitch.com, it means the average Co-op customer will now have to find an extra £15 a month, or £180 a year, to service their mortgage repayments. Homeowners with larger outstanding balances, however, could find themselves forking out a lot more.

In total, 54,000 customers will be hit by the move, which follows similar announcements from Halifax and Royal Bank of Scotland – two of the banks that remain state-owned after being given massive bailouts during the banking crisis. What makes the latest move particularly significant is that the Co-op has a reputation for fairness. When even the nice, friendly Co-op puts its rates up, it’s time to worry. It suggests a concern across the wider industry that the cost of funding mortgages is on the increase.

Working out when rates were going to start going up has been a game of nerve in recent years.

The problem for consumers is that the lenders have their armies of researchers and statisticians whose job it is to predict market conditions. That puts them one step ahead of consumers when it comes to forecasting moves in the market, so trying to second-guess when it’s the right time to fix your mortgage is never easy.

For many people, managing to fix at exactly the right time is down to good luck as much as anything else.

Michael Ossei, of Uswitch, said: “This news is another blow to homeowners who could see their monthly costs shoot up at a time when their finances are already stretched to the max.

“Many of those on tracker mortgages have been enjoying drastically lower mortgage payments over the last few years as a result of the low base rate.

“However, this will bring them back down to earth with a bang. And because these increases are nothing to do with the base rate, which still shows no signs of budging, the blow won’t even be softened by a corresponding increase to savings rates.”

He added: “Following similar increases from both Halifax and RBS, this move from the Co-op should serve as a warning sign that mortgage payments could go up at any time. And although it may be another year before the base rate rises, the only way for mortgage rates to go in the long term is up.”

Mr Ossei’s advice is worth heeding. If you’ve been sitting on a variable rate, the recent developments in the market mean you might want to start considering whether now is the time
to fix.

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By Tom Orford of Savills, Ipswich

Welcome green shoots of recovery are emerging along with the daffodils as Savills researchers report the first quarterly price rises in a year for some of the prime residential markets outside London.

Growth is mainly confined to the South East where values
rose by 1.5%, but in the East we have also seen a positive 0.3% rise.

Stability is returning to the Suffolk market, but price
growth here is modest when compared to other residential markets.

Prime Suffolk property has failed to keep pace with the prime markets of London, for example, but going forward its recovery should prove to be relatively steady.

The relative underperformance of this market over the past few years suggests a stronger capacity for growth during the year ahead.

And, in the short term, the less dramatic post downturn price growth should protect this market from the risks of a potential double dip which, as with the wider economy, has so far been avoided.

While country house prices in Suffolk and in the regions generally have been subject to these modest fortunes, the market in prime central London has charged ahead, driven by international equity.

The resulting gulf means that property outside the capital is looking like excellent value for money and over the last few months we have seen a surge in London applicants registering for our houses.

Given that house prices here are very low in relation to London, it will be interesting to see what effect the Chancellor’s new Stamp Duty rate of 7% for homes above £2m will have locally.

It is possible this could further encourage the trading of houses over the threshold in the capital for bigger properties under £2m here.

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By Gemma Cattermole of Connells

We’ve had a great start to the year here at Connells.

There have been more buyers and sellers in the market during first quarter of 2012, not to mention some significant new initiatives to help increase market activity and fuel the market from the bottom up.

The Government’s recently announced NewBuy scheme is one such initiative which should offer much needed help for buyers purchasing a new build property in the Ipswich area.

As we all know, securing higher loan to value mortgages has been more challenging of late, so this scheme enables purchasers to buy a new home with between five to ten per cent of the property value.

It works by allowing lenders and the Government to underwrite mortgages on new homes.

Developers who participate in the scheme will pay the lender 3.5 per cent of the value of the property, while the government guarantees an additional 5.5 per cent.

Lenders will then provide a higher loan to value mortgage to complete the purchase.

We at Connells are excited by the opportunities the scheme offers and welcome anything with the potential to help buyers purchase a new home, whether they are buying for the first time, or looking for move up the ladder.

It’s also great news for local developers and land owners.

As demand for new build properties increases, land owners with sites to sell will be able to capitalise on buyer activity.

Equally, developers with mothballed sites or plots of land which have been waiting for development to start can now reignite building work.

While it may not be the solution to a complete housing market recovery,

NewBuy is certainly a step in the right direction.

I would urge anyone who is looking to purchase through this scheme to come and speak to our mortgage consultant as soon as possible.

Connells are currently selling
Vista, a new homes development by Crest Nicholson situated just off Woodbridge Road, which is offering the scheme.

If you are interested in moving home, would like to book a free market appraisal with Connells or to discuss NewBuy, call the branch on 01473 233 966 or email: ipswich@connells.co.uk

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By Tom Orford, from Savills in Ipswich

 Asked to name their least favourite month of the year, there are probably few people who would not plump for the one to which we have just bade a less than fond farewell: February.

Cold, dull and damp, it is stuck gloomily between Christmas, the climax of one year, and spring, the renewal of the next. It is a month with few friends, even among the romantics for whom the Valentine’s Day circus brings some temporary respite.

 Before the fall of Communism, I always imagined that World War III, if it ever came, would start when I was caught in the rain on a dark evening in the middle of February.

 Such atmosphere seems hardly conducive to the housing market when so many potential buyers would prefer to curl up in front of the Sunday afternoon film or sport rather than dodging puddles or snow drifts as they flit from one house to another. However, strangely, it is exactly the time of year when people who are thinking of moving, should be viewing property rather than waiting for the better weather that comes with spring, and I genuinely believe that this is the best time to buy a house.

 If you like it now, you will love it on a sunny day in summer when the leaves are on the trees.

 This time of year is probably the most suitable period to assess any detrimental aspects. Indeed, the best time for a prospective purchaser to view is probably on a cold, wet day at about 4:30 in the afternoon for several reasons, but principally because:

 a) The leafless trees reveal anything unsightly within view of the property

 b) Noise from nearby railway stations or roads is always magnified in wet conditions and again there is no foliage to muffle the sound

 c) Light is always better judged in these circumstances. A light house will still look good on a grey day but a dark house with small windows will be at its most gloomy

 d) Any tendency towards dampness in a property will be amplified during wet weather

 e) Lastly, but not least, January, February and March are during term time, therefore traffic is at its greatest and at 3:30pm you can judge whether a house is influenced by a school run. Even better, look early in the morning or late in the afternoon to find whether it is on a commuting rat run.

 Undoubtedly, it is also better to go shopping for a new house when there are not many shoppers around as you are likely to get a deal.

 You are also less likely to get caught up in buyer fever when there are fewer buyers around. When prospective purchasers are competing against one another they tend to gloss over matters that require attention.

 One main problem, however, is that at this time of the year there is usually little on the market. Many vendors wait until the latter part of spring and early summer before placing their houses in order to lessen the impact of any problems that can be noticed in the winter, and enhance the general appeal of their house.

 If, however, you can find the right type of property it is easier to sort out the excellent from good and not so good on a dull winter’s day.

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By David Grier of Grier and Partners

We have been spending some time recently seeking an answer to the question of how best to communicate details of the properties we have for sale with as many interested buyers as is practical.

With this in mind we have consulted our internet advisers, website designers and our newspapers representatives, in an effort to see where buyers are actually looking for houses.

Not surprisingly the internet and the press came out top of the general enquiry list, but the rather old fashioned method of getting in your car to see where the schools, shops and facilities are in relation to the house is still of great importance when coming to a decision about actually living in the locality.

Ever individual has different needs, whether it is being able to walk to the village shop or being confident enough to let the children walk to school, these can only really be assessed by visiting, not just by looking on Google street map.

It would appear that receiving details by e-mail/post and then having a look at the outside of the property, with a ‘For Sale’ board clearly marking what is actually available, is still a vital part of the buying process.

There also appears to be a great benefit from having an office in the location where buyers are looking, with a number of experienced and knowledgeable staff who have information immediately to hand, and who can facilitate viewing arrangements.

Some of the old ideas which have stood the test of time still do work at a local level, the internet has a great part to play, but does not appear to be the answer to everything.

People still need to be able to talk and see their estate agent.

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