UK mortgage approvals hit a two-year high in September, with 65,600 new loans, driven by interest rate cuts that attracted buyers back to the market. This rise follows the Bank of England's recent rate cut from 5.25% to 5%, marking a 4th straight month of increased approvals. Analysts expect further rate reductions to support housing demand despite tax hikes in the budget, potentially pushing home prices up 4-5% annually by year-end. Alongside housing, consumer borrowing rose by £1.2 billion, indicating resilient spending ahead of anticipated economic growth.