UK mortgage approvals reach highest level since 2022 mini-budget as interest rates fall

UK mortgage approvals rose to 65,600 in September, marking the highest level since the 2022 mini-budget. This increase of 700 approvals follows four consecutive monthly gains, driven by falling interest rates. The Bank of England cut its official interest rate from 5.25% to 5% in August, contributing to the rise in demand for home loans. Mortgage rates also decreased slightly, with the effective rate dropping from 4.84% to 4.76%. Consumer borrowing increased by £1.2 billion in September, consistent with recent trends. Analysts suggest that lower inflation and rising household incomes may support the housing market despite potential tax increases in the upcoming budget.