Interest rates stable in September

Fiona Wilson from the Mortgage Advice Bureau comments on the Bank of England’s decision to retain the Bank Base Rate at half of one percent for the eighteenth consecutive month.

“Few will be surprised to see the Bank Base Rate maintained at 0.5% for yet another month. Although the economic growth rate was recently revised upwards to 1.1%, inflation has just started to fall back so it was no surprise to see the bank retaining their cautious, wait and see approach!

It is expected that some government departments will face significant reductions in their budgets. This will result in job losses and a tightening of belts as individuals’ disposable incomes are squeezed as the planned tax rise kicks in early next year.

Now that the summer holidays are largely consigned to a photographic memory, we have seen a substantial increase in the choice of mortgage products available with lenders. Mortgage product numbers in the first week of September were at a year to date high of more than 4,700 deals, an increase of approximately 1,000 products in a little under two months and also surpassing product numbers available at any point in 2009. This is good news for borrowers as a greater choice means more competitive products for anyone looking to buy or those looking to remortgage.

The price of the average 2 year fixed rate mortgage in September as reported by Moneyfacts is 4.55%, down from almost 5% (4.93%) at the end of 2009 and the average 5 year fixed deal has continued to reduce, now down to 5.56% from more than 6% (6.15%) in December 2009.

As a result of fixed rate deals having reduced in price over several months, it seems their appeal to borrowers has increased with more than 60% of buyers opting to fix.”

Fiona Wilson is from the Mortgage Advice Bureau working with Jonathan Waters Estate Agents, for further information on how the latest base rate decision affects you, please call Fiona Wilson on 01473 721133 or 01473 281188, or via our website

Your home may be repossessed if you do not keep up repayments on your mortgage.

A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £95.

Sell your home by Christmas and beat the VAT increase!

From the 4th of January 2011, VAT will rise from 17.5% to 20%. The change will significantly affect both a buyer’s and a seller’s costs to move, with increased VAT impacting not only estate agency fees and conveyancing costs, but also potentially the cost of surveys, land registry and search fees. Moving costs too are likely to increase, as are the price of redecoration and furnishing and these increases are not far away.

It takes on average 13 weeks to complete a house move, once a sale has been agreed. So sellers putting their home for sale at the end of August / beginning of September still have time to beat the VAT increase if they act quickly! It is also worth bearing in mind that many companies will not increase their prices immediately following the change in the law, so even if your move does not complete until January or February you may still save money on certain aspects.

The market is still very buoyant so there really is, no better time to sell. And from a buyers viewpoint, if you act quickly, with a bit of luck you could still be in your new home by Christmas.

Contact Jonathan Waters Estate Agents today to sell your Ipswich or Clacton property

Mortgage Interest Rates Still Competitive

Jonathan Waters Estate Agents comment on the recent Bank Base Rate decision:-

“Yet another month has gone by with no change to the Bank Base Rate (BBR). Once again the Bank of England (BOE) have taken the view that the economy is still too fragile to start to raise rates back towards more normal levels.

This is now unlikely to change in the short term with the Governor of the Bank of England recently commenting that he could see rates remain low for the foreseeable future.

This provides further support to the housing and mortgage markets and should help ensure that both borrowers looking to move home and those who want to remortgage, continue to see very competitive mortgage interest rates.

Mortgage product availability remains at close to the highest levels seen this year in spite of the seasonal dip in activity that generally takes place over the summer months, with many high street lenders continuing to review their products to attract borrowers.

Borrower preferences have seen a further move towards fixed rates with 6 out of 10 borrowers choosing fixed rates in July, which is something of a shift from several months ago when variable rates were more popular.

Interest rates are often a topic of conversation and differences of opinion have always existed amongst economists, bankers and politicians in relation to interest rate setting policy. However, interest rates are unlikely to fall any further and those buyers and borrowers that want to move either their home or their mortgage currently have access to some excellent products.

For further information on how the latest base rate decision affects you please call Jonathan Waters Estate Agency in Ipswich on 01473 721133.

Your home may be repossessed if you do not keep up repayments on your mortgage.

A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £95. (or insert fee statement)

Sell your Ipswich Property – contact us now for a free valuation and to discuss your move!

Sell your Clacton Property – contact us now for a free valuation and to discuss your move!

The question everyone will want an answer to!

Fiona Wilson from the Mortgage Advice Bureau comments on The Bank of England’s decision to continue their policy of holding the bank base rate at 0.5% for the 17th consecutive month.

“Now that the new coalition government have put forward their emergency budget and plans to tackle the public deficit, the effect of these proposals will mean less disposable income through rises in direct and indirect taxation for most people. The Monetary Policy Committee may have felt that raising interest rates at this time would potentially stop what is currently very modest growth in the economy.

The last month or so has continued to see lenders trimming their mortgage rates to prospective borrowers with Moneyfacts reporting the average 2 year fixed rate now standing at 4.51%. Recent lending patterns have suggested that borrowers are increasingly opting for fixed rates over variable deals with more people choosing fixed rates in June 2010.

As always the question everyone will want an answer to is - when will interest rates rise? Once again the answer is no-one really knows, from our understanding the opinion currently is that following the announcements concerning public finances and the likely impact that this is going to have on public sector jobs, incomes interest rates are likely to stay lower for longer, but that does not necessarily mean that rates will not start to creep up slowly!”

Fiona Wilson is from the Mortgage Advice Bureau for further information on how the latest base rate decision affects you, please call Jonathan Waters Estate Agents on 01473 721133 or visit www.mortgageadvicebureau.com/jonathanwaters for further information and advice.

Your home may be repossessed if you do not keep up repayments on your mortgage.

A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £95.




MAB 3724

A Reasonable Budget for Property

“A Reasonable Budget for Property”

There have been mixed messages surrounding Tuesday’s budget, with most criticism predictably coming from those now sitting on the opposition benches.

Whilst everyone was expecting tough measures, those announced are unlikely to have a major impact on the recovering property market. The Stamp Duty tax break for first time buyers up to £250,000 remains in place, which is good news. The two main changes concern Capital Gains Tax and VAT.

CGT is rising with immediate effect from 18% for basic rate taxpayers to 28% for higher rate taxpayers. This nevertheless remains well below the 40% it used to be until just three years ago. This is unlikely to affect the majority of homeowners as in the UK, unlike many other countries, we enjoy tax exemption from any appreciation in the value of our principal residence.

However, second home or buy-to-let owners will need to take this new regime into account when deciding whether or not to sell. An important consideration is that any gain is actually added to income for CGT purposes and could well tip a basic rate taxpayer into the higher rate bracket.

The good news is that this change is immediate. Had the chancellor decided to implement this from eg. the next financial year, there would have been a flood of properties entering the market in order to avoid the hike, thereby undermining prices.

VAT is to rise from 17.5% to 20% from January. This 2.5 point rise is again unlikely to affect property prices as it will only apply to certain costs of sale such as removals, solicitor’s fees, and estate agency fees. The actual figures involved are relatively nominal, and are unlikely to prompt people to sell as a direct result. At xxxx agency we’ll be absorbing the difference for all our selling clients for a whole year in any event!


©Copyright 2010 Richard Rawlings except as excluded under licence.

Housing Market Filled With Vigour & Optimism

With the instability and uncertainty of the election period behind us and a stable coalition government now in place, the housing market is filled with a renewed sense of optimism and vigour.

One of the first acts of the new government, and the catalyst for this vitality, was to abolish HIPS. This was a real shot in the arm for the housing market and just what was needed to encourage potential sellers to have a go at selling their property without having to pay out a large upfront fee.

Since then, we have had the emergency budget and are pleased to report that the slight pre-budget lull has turned into a post-budget, post-HIPS, post- election surge of new interest!

This surge is reflected in the fact that our offices, both town centre and East Ipswich are busier than ever and new enquiries are coming in thick and fast over the phone and from our web site.

Property prices are increasing once more so now is the time to get on to the property ladder or to move a few rungs further up it. Vendors can take steps to make the most of their properties to achieve the best prices. These could include de-cluttering, finishing off any annoying jobs and tidying the gardens to increase that all important curb appeal.

Buyers can look to securing some good mortgage deals at the moment as the banks continue to loosen their lending criteria. And remember, if you can get into a strong position, before you make an offer, then there are still deals to be had! Once you have secured a buyer, or if you have no independent sale, then your estate agency can negotiate you a good deal on your new home – saving you money on the purchase of your next property.

All in all, this has been a generally good budget and one designed to bolster the economy in many ways. Stamp duty rates remained the same as they were set to in March 2010, which is good news for first time buyers. VAT is set to increase to 20% in January 2011, so if you are serious about moving, act now, to avoid increase VAT charges on your moving fees.

Sell your Ipswich property – click here to arrange a free valuation.

Be a World Cup Winner with Jonathan Waters Estate Agents!

The World Cup starts today and to mark this exciting event Jonathan Waters Estate Agents are running a fantastic World Cup competition!

For all sellers come onto the market with Jonathan Waters Estate Agents in Ipswich and Clacton, during the World Cup (11th June - 11th July) will be entered into a prize draw to win their house sale totally free of charges!

What's more, all new sellers who list their property for sale during the span of the competition, will receive £250 (inc VAT) of our standard selling fees* and a £25.00 donation will be made by Jonathan Waters Estate Agents to the Genesis Orwell Mencap.

And if England win the World Cup we'll celebrate with you by increasing our offer to £500 (inc VAT) off our standard commission fees!*

To take advantage of this amazing offer, contact us now to arrange your free property valuation!