Property market defies the gloom as mortgage rates fall

HOUSE purchase approvals hit a nine-month high in September, as borrowing costs continued to ease and buyers shrugged off concerns about a potential property tax overhaul.

- By Anna Wise

MAKING MOVES: Approvals on rise

Some 65,940 mortgages were approved in September, about 1,000 more than in August.

It comes as the “effective” interest rate — the actual interest paid — on new mortgages dropped to 4.19% in September. That was the lowest level since the start of January.

The level of mortgage lending also increased by 3.2% last month, the fastest rate since the start of 2023, according to Bank of England data.