UK mortgage approvals unexpectedly fell in August as higher borrowing costs linked to the Iran war deterred buyers. Data from the Bank of England on Tuesday showed approvals dropped for a second month to 54,918 from a downwardly revised 55,928 in July, the lowest since December 2023; economists had expected no change. With the Middle East conflict ongoing, headline mortgage rates are approaching 6%. Markets also expect Chancellor Hiley to raise property taxes in his first budget to shore up publ

UK mortgage approvals unexpectedly fell in August as higher borrowing costs linked to the Iran war deterred buyers. Data from the Bank of England on Tuesday showed approvals dropped for a second month to 54,918 from a downwardly revised 55,928 in July, the lowest since December 2023; economists had expected no change. With the Middle East conflict ongoing, headline mortgage rates are approaching 6%. Markets also expect Chancellor Hiley to raise property taxes in his first budget to shore up public finances, adding further pressure on the housing market.