PROSPECTIVE homeowners could pay as much as £3,000 a month for a mortgage on an average priced home in Colchester.

Figures released by the Office for National Statistics have revealed average house prices in the city have increased by up to 30 per cent in five years.

What is the average house price in Colchester?

The data shows that in the five years to December 2022:

  • The average price for a detached house rose to £564,000, up 30 per cent;
  • Semi-detached properties have seen similar growth, up 29 per cent to £354,000;
  • The average terraced house is now priced at £287,000, an increase of 27 per cent;
  • Flats have experienced less substantial growth, with the average apartment costing £182,000, up 11 per cent compared to five years ago.

The data also reveals that the monthly mortgage payment for an average priced detached house in Colchester could be £3,230, fixed for five years, based on a 25 year term and a ten per cent deposit.

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Can I get a mortgage?

A mortgage adviser has told the Gazette that they’re “having difficult conversations” with their clients as a result of the cost-of-living crisis and increased interest rates.

Emma Cotterell, who is the mortgage and protection manager at Gemstone Mortgages on North Hill, Colchester, said: “Some lenders have tightened their affordability assessments over the last few months and as a result some people are now having to look at slightly less expensive houses.

“If you’re concerned about your mortgage, whether it be a new or existing one, always speak to a broker.

“There’s always a solution, so it’s always worth a conversation regardless of the situation that you think you’re in.”

The East of England is the region with the third highest growth in monthly mortgage payments in the 12 months to December, with average payments increasing by £347 for flats and by £939 for detached houses.