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It feels nothing like ‘fine dining’, but Copenhagen’s Kadeau is a true gift 

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For much of its long and fascinating history, Denmark was of little interest to food lovers. Its contribution to world cuisine comprised industrially produced bacon, some nice butter and the endless amusement provided to adventurous culinary travellers by spunk, salty liquorice sweets available in little boxes in every corner store.

In 2003, things changed. A young chef called René Redzepi opened Noma in Copenhagen and led a deeply photogenic movement towards an almost Japanese presentation of ingredients that were exotic and tempting, not because of their price, but because they’d been locally foraged. “New Nordic cuisine” was born, entirely novel and fully disconnected from the classical French canon.

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Copenhagen quickly became a destination for a new international Foodie Jet Set. Sure, food lovers had always travelled. Paris, Lyon, Florence or Barcelona had long attracted those interested in the finest executions of the great cuisines of Europe. People would make an effort to go to El Bulli or The French Laundry, but Copenhagen was something new. It sprang into being as a “foodie destination” on no rootstock older than Redzepi’s odd vision.

Noma was recognised early by the two self-appointed arbiters of International Fine Dining. Michelin originally rated food for the French, then naturally became essential for foreign visitors to France and finally pronounced on fine dining across all traditions and all territories. In 2002, the upstart The World’s 50 Best arrived with the bold intention of judging the entire culinary world on their own new criteria of fine dining. Both recognised immediately what was going on in Copenhagen and seized upon it. Ironic, really, considering Noma’s fabulous ethos of hyper-localism, that it should become ground zero for an entirely globalised phenomenon.

Today, Copenhagen is one of the most enjoyable places in the world to eat. It does gastronomy like Florence does art. It seems like every sandwich wagon and corner bakery is run by bright-eyed kids who staged at Noma. The quality of mid-range eating is stupendous and refreshingly international. But here, we are also at the beating heart and the bleeding edge of modern fine dining.

I visited two restaurants in Copenhagen. Koan is run by a Danish/Korean chef and has two Michelin stars. As you may remember from my review this summer, the 17-course tasting menu was exceptional, but readers may recall a discomfitingly assertive upselling of champagne. It was easy to class as modern international fine dining. But did I love it? On balance, no. The effort undermined the pleasure.

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Kadeau is a different proposition. On the ground floor of a residential building in the old docks area of Christianshavn, it’s on a seductively humane scale. I counted about a dozen tables and at least as many staff as customers. The kitchen isn’t just “open” but runs continuously into the dining room. There is no stainless steel in sight. In fact, unless you look really closely, there’s no evidence of any professional kit. The chefs work quietly, but there’s a warm buzz creating an unusual atmosphere of very Danish domestic hospitality. This is not what I expected.

The food, foraged from the chefs’ home island of Bornholm, is stellar. Completely unique celebrations of ingredients I had never encountered, in combinations I could never have imagined. Fourteen courses (of course), but also probably a dozen moments of genuine delight. As with any multicourse menu there’s too much to describe in detail but, as an example, I’ve never had a piece of salmon cold smoked first, with cherry wood, then hot smoked just before serving — serving that involves bringing the perfectly formed tail fillet to the table on a board then digging out only the meat from the core and presenting it in a lavender-scented butter broth. The flavour combination is breathtaking, but the understanding of smoke, heat and fish flesh, the depth of knowledge and respect for the ingredients, leaves me lost for words.

To bring raw fjord shrimp to the table would be satisfying enough, but to wrap five of them in separate “leathers” of tomato, rose, cherry leaf, plum and strawberry is both audacious and the work of a fine mind.

The floor staff, individually assigned to tables, present a precise balance of friendly and efficient. I loved it, self-evidently. It was a dining experience that produced joy by any standards or criteria. But with no tablecloths, no fawning, a deliberate informality and careful avoidance of the old-school signifiers or tropes, isn’t this the antithesis of fine dining?

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In the absence of an aristocracy to which I can aspire, this is exactly how I imagine a self-made billionaire genius with a social conscience, a disarmingly humble and democratic ethic, a taste for modest Danish/Japanese design and humbling generosity might live and eat, and, God knows, I find myself willing to pay for it — though it comes in close to £500 per head with a couple of glasses of wine. This is going to be as fine a dining experience as I’m ever going to have. It doesn’t “feel” like fine dining, by any of the old standards . . . but it’s only available to a self-selecting set and conforms to a code that increasingly only they can experience and understand. I love it because, uniquely in my experience, it expresses the peak of cooking and the essence of hospitality.

I can’t afford to stay here in Copenhagen, no matter how much I’d like to. I need to get back to London to find out if we can do this at home.

Kadeau

17 Kadeau Copenhagen, Wildersgade 10 B, 1408 Kbh K; kbh@kadeau.dk; +45 33 25 22 23

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Menu: DKr3,500 (£390)
Wine pairing: DKr2,200 (£250)

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Kamala Harris tries to lock in anti-Trump Republican voters

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Former Republican congresswoman Liz Cheney will campaign with Kamala Harris in Wisconsin on Thursday, as the Democratic vice-president steps up efforts to win over Republicans unwilling to vote for Donald Trump.

Liz Cheney, the daughter of George W Bush’s vice-president Dick Cheney, last month endorsed Harris’s White House campaign as she warned of the “danger” of re-electing Trump. Dick Cheney subsequently also said he would vote for Harris.

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The vice-president and Cheney will appear in the Wisconsin city of Ripon, considered the birthplace of the modern Republican party, a campaign official said.

Harris will say that while she and Republican voters may not agree on every policy issue, they can trust her to uphold the constitution and the rule of law, the official said.

The campaign stop, just a month ahead of the election, marks Harris’s most explicit attempt to lure Republicans who have been disenchanted with Trump’s control of their party — and whose votes could decide the election.

Cheney’s appearance in Wisconsin comes days after Jeff Flake, a former Republican senator from Arizona, announced he was also backing Harris, saying she represented a “new generation of leadership based not on grievances of the past, but hope for the future” — a pointed allusion to Trump.

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In August, several former Trump administration officials and other big-name Republicans gave primetime speeches at the Democratic National Convention, and the Harris campaign has deployed prominent Republicans to campaign for her in battleground states.

The campaign has also invested heavily in advertising campaigns directed at moderate Republicans whose votes could be decisive in a gridlocked election.

The latest Financial Times poll tracker puts Harris slightly ahead of Trump nationally but in a split race in the swing states.

“[The Harris campaign] is doing a really good job of reaching out for us and, well, welcoming us into the fold,” said Geoff Duncan, the former Republican lieutenant-governor of Georgia who has criticised Trump for trying to overturn the 2020 election. Duncan spoke at the DNC in August and has since campaigned for Harris in his home state of Georgia, a swing state.

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“[Harris] has really shown a willingness to listen to the thoughts and ideas of those of us in the middle,” Duncan added.

Other high-profile Republican Trump critics — including Utah senator Mitt Romney, former president George W Bush and former secretary of state Condoleezza Rice — have stopped short of endorsing Harris. Many of Trump’s other Republican detractors, most notably former South Carolina governor Nikki Haley, have now backed him.

Strategists say Harris could settle the contest with Trump if she wins a fraction of the Republican voters who backed Haley against him in their primary race this year.

A campaign group called “Haley Voters for Harris” on Wednesday announced a new “seven-figure” investment in its own advertising campaign targeting Haley primary voters.

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In Pennsylvania, arguably the election’s most important swing state, more than 150,000 people, or nearly 17 per cent of Republican voters, picked Haley over Trump in April — even though she had abandoned her White House run two months earlier.

Now, some of those Haley supporters say they will vote for Harris.

Jack Merritt, a 74-year-old Republican from the Philadelphia suburbs who had previously told the FT he would spoil his ballot by voting for Haley in the general election, now says the vice-president has won him over.

“I remain a committed conservative,” Merritt said. “I don’t think she’s quite as liberal as people would like to paint her. Trump has got the potential of doing much more harm on the world stage than she would do . . . I have arrived at my least-bad choice.”

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One former Republican official from a neighbouring Pennsylvania town said it was now “90 per cent certain” he would vote for Harris.

“Voting for Trump is not an option. I agree with former vice-president Cheney: he is a danger to the republic,” the former official added.

But other Haley primary voters in Pennsylvania contacted by the FT were unconvinced by Harris’s pitch, and suggested they might skip the top of the ticket altogether.

“I thought [Biden and Trump] were two bad choices,” said Marshall Lerner, a 73-year-old retiree who voted for Trump in 2016 and 2020 and remains undecided about November. “Today, I would have to say, I don’t like either candidate. They are still two bad choices.”

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Still time to register for MMI London

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Still time to register for MMI London

There is still time to register for our flagship conference, Money Marketing Interactive London, which takes place in five days’ time.

This not-to-be missed event, in association with Fundment, will be held at Convene, 155 Bishopsgate, on Tuesday, 8 October.

The day will be packed with intriguing sessions led by industry experts and thought leaders.

Some of the subjects they will explore include the impact of the Consumer Duty twelve months on and the implications of the FCA’s new SDR proposals.

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MMI London will feature practical sessions on key supplier relationships including platforms, back-office systems, and investment management options as well as run the rule over tax planning and investment strategies to help advisers provide value-added advice.

NextGen Planners will also be there to talk more on philanthropy and sustainable investing.

Our keynote speaker, broadcaster and journalist will chat to delegates about the impact of the new Labour government on financial regulation.

Timeline’s CEO Abraham Okusanya and Benchmark Capital CEO Ed Dymott will be among those on a panel discussion to help you choose the right tech stack for your business.

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The event will give people the chance to connect with peers, experts and potential collaborators during our networking sessions.

The conference is not just about gaining knowledge; it’s an opportunity to foster meaningful relationships that can drive your business’ success.

There will be workshops from SimplyBiz, Albemarle Street Partners, HSBC Life, EV, Verve and a breakfast briefing by The Financial Planning Club too.

Workshop selections are now closed, but there is still opportunity to sign up on the day at the registration desk.

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Reserve your 5-hour CPD accredited place today and join us.

You can register for free here.

To see the full agenda, click this link.

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Whitbread to build 693-room hub by Premier Inn next to Charing Cross station

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Whitbread to build 693-room hub by Premier Inn next to Charing Cross station

The site off London’s Trafalgar Square had previously been earmarked for a Park Hyatt hotel

Continue reading Whitbread to build 693-room hub by Premier Inn next to Charing Cross station at Business Traveller.

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What a Middle East oil price shock could mean for US consumers

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This article is an on-site version of our Energy Source newsletter. Premium subscribers can sign up here to get the newsletter delivered every Tuesday and Thursday. Standard subscribers can upgrade to Premium here, or explore all FT newsletters

Good morning and welcome back to Energy Source, coming to you from New York.

More than a million households remained without power in the US south-east as of yesterday evening, after Hurricane Helene devastated the region, killing more than 180 people and making the storm the deadliest since Hurricane Katrina in 2005.

Down in west Texas, former president Donald Trump hosted a private fundraising event in Midland yesterday, where he made a pitch to oil donors for cash as his campaign enters its final stretch.

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The world is holding its breath as it awaits Israel’s widely expected retaliation against Iran for its missile barrage on Tuesday. The FT has a breakdown on how the IDF could respond, including attacks on Iran’s missile launchers or oil infrastructure.

Today’s Energy Source breaks down what this rapid escalation in the Middle East could mean for the US oil market, just as the country prepares to cast votes in the presidential election.

Thanks for reading,

Amanda

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Explore how to accelerate a secure, affordable, and sustainable energy future at our upcoming Energy Transition Summit series. Join CEOs, politicians and investors in India (8-9 October, New Delhi & online) or in London (22-24 October, London & online).

Is the US prepared for a Middle East oil shock?

The prospect of an all-out regional war in the Middle East is higher than ever this week as the world braces for Israel’s response to Iran’s missile attack.

The rapid escalation woke up an oil market that had otherwise been complacent about the Middle East conflict, which has caused no major supply disruptions. Brent crude, the international benchmark, climbed as high as $76.03 before closing at $73.90 yesterday. West Texas Intermediate, the US marker, closed 0.4 per cent higher at $70.10 a barrel.

The fear among traders is that an Israeli retaliation could target oil infrastructure in Iran, an Opec member that exports about 1.7mn barrels of oil a day. An attack could also move the region closer to a worst-case scenario for the oil market where Opec production is compromised and Tehran shuts down the Strait of Hormuz, a crucial chokepoint for crude, sending prices spiralling into the triple digits.

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Ben Hoff, global head of commodity strategy at Société Générale, said: “It’s like a game of Jenga, where the question really becomes, once you’re at the seventh or eighth block, which one is it going to be that just ends up being a little bit too much, and the whole thing collapses on itself?”

Line chart of $ per barrel showing Crude prices are inching higher

What does this mean for the US? Harold Hamm, founder of Continental Resources and a donor to Donald Trump’s election campaign, warned the US was “unusually vulnerable” to a Middle East oil shock, blaming the Joe Biden administration policies for leaving the US shale patch in “weakened condition”.

But it’s not the 1970s any more. Thanks to the shale revolution, the US is the largest oil and gas producer, with output sitting at record highs. An oil shock from the Middle East is not going to devastate the US economy in the same way as it did then.

“The US is the most prepared out of any developed [economy] . . . to handle a significant disruption in the Middle East,” said Hunter Kornfeind, an oil market analyst at Rapidan Energy Group.

Line chart of Million barrels a day  showing US oil production sits at record highs

That’s not to say higher crude prices from market fears or a real disruption to global supplies won’t pinch consumers. 

While the US became a net exporter of petroleum in 2020, it remains a net importer of crude oil that’s often used in refineries, with imports totalling 6.48mn b/d last year, about a quarter of which is from Opec and the Gulf, according to the Energy Information Administration. Higher global market prices for oil will drive up the price of refined products such as petrol and diesel for American consumers.

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The US has a “big bridge cushion” of crude inventories to help mediate the effect of any price swings, say analysts. The country has about 383mn barrels (about 50 per cent capacity) left in its strategic petroleum reserve, which was created in the wake of the Arab oil embargo in the early 1970s, in addition to 413mn barrels in commercial crude inventories. The US consumes roughly 20mn barrels of petroleum a day.

Line chart of Monthly net imports, millions of barrels a day showing US remains a net importer of crude oil

The White House began releasing oil from the SPR in 2021 ahead of Moscow’s invasion of Ukraine in an attempt to keep down domestic petrol prices. It released another 180mn barrels of oil from the reserve in 2022 after sanctions on Russia brought fears of supply disruptions.

Trump and his supporters, including Hamm, claim the Biden administration has left the country exposed to an oil shock, with Trump vowing to fill up the SPR “immediately” if elected in November.

Analysts brushed off the concerns. “The SPR is lower than it was pre-Ukraine. But at the same time, it still has enough to offset any kind of supply interruption at least for an immediate period,” Kornfeind said.

Absent a disruption in the Strait of Hormuz, there’s also a lot of spare capacity from Opec sitting on the sidelines. Since late 2022, the oil cartel has artificially cut output, totalling about 5.7 per cent of global crude consumption in an effort to boost prices during weak global demand. In a meeting yesterday, top Opec+ ministers left their oil policy unchanged.

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“The market remains bearish on fundamentals for next year and does not believe oil supplies will be at risk despite the escalation,” said Amrita Sen, founder and managing director of Energy Aspects. “Prices may fall back after the initial rally.”

Line chart of Weekly stocks of crude oil in Strategic Petroleum Reserve, millions of barrels showing US emergency crude stockpiles are half full

Perhaps the biggest consequences for the US from higher global crude prices is at the ballot box. Escalatory action in the Middle East could drive up gasoline prices, just as Americans go to the polls next month to pick their next president.

Henning Gloystein, practice head of energy, climate and resources at Eurasia Group, said: “If there’s any major oil price spikes, that will be immediately felt at the pump, and that’s what American voters care about more than anything else in terms of daily pricing.”

A rise in petrol prices in the coming weeks was a “bad situation” for the election prospects of Democratic candidate Kamala Harris, he added.

Power Points

  • TotalEnergies warns it will curb UK investments and restructure North Sea operations if the government increases its windfall tax as planned

  • Chinese investment abroad is surging from record levels as the country’s clean energy sector looks to set up manufacturing operations abroad in the face of US and EU tariffs.

  • Opinion: Alan Beattie explains why the US can’t impose its will over global trade in electric cars.


Energy Source is written and edited by Jamie Smyth, Myles McCormick, Amanda Chu, Tom Wilson and Malcolm Moore, with support from the FT’s global team of reporters. Reach us at energy.source@ft.com and follow us on X at @FTEnergy. Catch up on past editions of the newsletter here.

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Map reveals areas where house prices are falling – and the ‘affordable’ locations which are rising

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Map reveals areas where house prices are falling - and the 'affordable' locations which are rising

THE areas where house prices are falling the most and the “affordable” locations where they’re rising have been revealed.

A typical home in the UK was worth £267,100 in August, 0.7%, or £1,970, more than a year ago, according to Zoopla.

House prices are on track to rise 2.5% higher by the end of the year

1

House prices are on track to rise 2.5% higher by the end of the year

On a monthly basis, the value of a typical home rose by £700.

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House prices are now on track to rise 2.5% higher by the end of the year, Zoopla estimates.

Property sales have increased as mortgage rates are now at their lowest level for 15 months, making it cheaper for homeowners to borrow money.

A borrower who is looking to remortgage and owns 25% of their home can now lock into a five-year deal at 4.3% down from 5.5% a year ago.

Read more on house prices

On a loan with £250,000 left to pay this would be equivalent to a £250 decrease in the amount they would need to spend on their mortgage each month.

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Meanwhile, interest rates have continued to fall as lenders compete with each other to attract borrowers.

The number of buyers looking for a new home and homeowners putting their property on the market has risen as a result.

As more buyers return to the market the level of competition for each home has increased, which has moderately pushed up property prices.

The website said affordability continues to constrain house price growth, particularly in southern England.

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Greater choice for home buyers is also expected to keep house price growth in check in the months ahead.

Best schemes for first-time buyers

And not all homes are fresh to the market. A fifth of homes currently for sale were previously on the market at some stage in the past two years, according to Zoopla’s data.

Setting the right price is important to attract buyers, Zoopla said.

How have prices changed per region?

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Manchester has seen the greatest increase in house prices of any region in England, with the value of a typical property up 2.3% in the past year.

An average home in the city is now worth £227,200.

Liverpool has also seen prices climb in the past 12 months, pushing up the value of a typical property to £160,400, which is 2% higher than a year ago.

But not all regions have seen house prices rise in the last year.

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Aberdeen and Glasgow have both seen prices tumble by 1% since last August, the greatest fall of any UK region.

A typical home in Aberdeen is now worth £135,700 while in Glasgow it’s £150,200.

Cambridge also saw prices edge down by 0.1% in the past year but the value of an average home is still well above the national average.

A typical property in the area was worth £469,300 in August, £202,200 more than the national average.

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Meanwhile, prices remained unchanged in Bournemouth and Leicester over the past year.

A typical home in Bournemouth is still worth £333,800 after seeing nothing added to its value in the past 12 months.

Meanwhile, an average property in Leicester is worth £226,200 after its value failed to increase in the past year.

Here are the average prices in August and their annual change, according to Zoopla:

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  • Belfast – £1,78,200, 5.1%
  • Manchester – £227,200, 2.3%
  • Liverpool – £160,400, 2%
  • Glasgow – £150,200, 1.9%
  • Leeds – £210,600, 1.7%
  • Cardiff – £256,000, 1.6%
  • Sheffield – £173,300, 1.4%
  • Birmingham – £211,800, 1.3%
  • Newcastle – £155,400, 1%
  • Nottingham – £203,700, 0.9%
  • Edinburgh – £273,400, 0.8%
  • Oxford – £452,000, 0.6%
  • Bristol – £340,100, 0.3%
  • Southampton – £258,400, 0.2%
  • Bournemouth – £333,800, 0%
  • Leicester – £226,200, 0%
  • Cambridge – £469,300, -0.1%
  • Aberdeen – £135,700, -0.1%
  • Portsmouth – £279,800, -1%

Richard Donnell, executive director at Zoopla said: “Lower mortgage rates are delivering a much-needed confidence boost to homeowners, many of whom have sat on the sidelines over the last two years. 

“Market activity is up across the board and expectations of lower borrowing costs will continue to bring buyers and sellers into the market.”

Who else tracks house prices?

Halifax is part of Lloyds Group, which is the UK’s biggest mortgage lender.

Its monthly house price index is based on the mortgage data it holds and has been going since 1983.

It’s one of several key barometers of the property market.

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The official measure of house prices is from the Office for National Statistics, which uses data from the Land Registry where the actual sold price is recorded.

This is the most accurate of all the indices, but the figures come out three months after the homes are sold, so there’s a big time lag.

Halifax and Nationwide each publish a monthly index tracking the average prices of homes on which they provide mortgages.

While they do adjust their figures to iron out big outliers, both lenders measure average house prices based on the properties they see.

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As it’s based on mortgage approvals, cash buyers are not included.

Rightmove and Zoopla also publish monthly house price data.

The former is based on asking prices from the property listings on its website.

The latter uses sold prices, mortgage valuations and data on agreed sales.

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Neither takes into account the price a property actually sold for like the ONS Land Registry, which could end up being higher or lower and some might not even sell at all.

Here’s the latest data from other indices:

  • Rightmove (September 2024) +0.8% monthly, +1.2% annually
  • Nationwide (August 2024) +0.7% monthly, +3.2% annually
  • Halifax (August 2024) +0.3% monthly, +4.3% annually
  • ONS Land Registry (July 2024) +2.2% monthly, +2.2% annually

How to get the best deal on your mortgage

IF you’re looking for a traditional type of mortgage, getting the best rates depends entirely on what’s available at any given time.

There are several ways to land the best deal.

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Usually the larger the deposit you have the lower the rate you can get.

If you’re remortgaging and your loan-to-value ratio (LTV) has changed, you’ll get access to better rates than before.

Your LTV will go down if your outstanding mortgage is lower and/or your home’s value is higher.

A change to your credit score or a better salary could also help you access better rates.

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And if you’re nearing the end of a fixed deal soon it’s worth looking for new deals now.

You can lock in current deals sometimes up to six months before your current deal ends.

Leaving a fixed deal early will usually come with an early exit fee, so you want to avoid this extra cost.

But depending on the cost and how much you could save by switching versus sticking, it could be worth paying to leave the deal – but compare the costs first.

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To find the best deal use a mortgage comparison tool to see what’s available.

You can also go to a mortgage broker who can compare a much larger range of deals for you.

Some will charge an extra fee but there are plenty who give advice for free and get paid only on commission from the lender.

You’ll also need to factor in fees for the mortgage, though some have no fees at all.

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You can add the fee – sometimes more than £1,000 – to the cost of the mortgage, but be aware that means you’ll pay interest on it and so will cost more in the long term.

You can use a mortgage calculator to see how much you could borrow.

Remember you’ll have to pass the lender’s strict eligibility criteria too, which will include affordability checks and looking at your credit file.

You may also need to provide documents such as utility bills, proof of benefits, your last three month’s payslips, passports and bank statements.

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Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

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Turkish inflation falls below 50% in boon to Erdoğan

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Turkey’s inflation rate has fallen below 50 per cent for the first time in more than a year, underscoring how President Recep Tayyip Erdoğan’s economic turnaround programme is succeeding in slowing runaway price growth.

Consumer prices rose 49 per cent in September from the same month in 2023, below the previous month’s rate of 52 per cent and the slowest pace since July 2023, Turkey’s statistical institute said on Thursday.

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Inflation is now lower than the central bank’s policy rate of 50 per cent, meaning so-called real interest rates have turned positive for the first time since 2021, according to FactSet data.

The slowdown in inflation and flip higher in real rates underscore how authorities are making progress in turning around Turkey’s $1tn economy following a series of sweeping policy U-turns that began after Erdoğan’s re-election in May 2023.

While Erdoğan had previously championed an idiosyncratic policy of holding rates low at all costs, Turkey has since imposed painful austerity measures including higher rates and taxes in a bid to control runaway prices.

Finance minister Mehmet Şimşek, who has vowed to restore “rational” economic policymaking, said Thursday’s data was evidence that “reducing inflation will not only solve the problem of the cost of living, but will also permanently increase the welfare of our citizens”.

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Line chart of  showing Turkish real interest rates turn positive

Erdoğan’s previous policy had caused major imbalances in Turkey’s economy, with inflation having peaked above 85 per cent in 2022.

He added fuel to the overheating economy prior to the May 2023 general election with massive stimulus measures, including a month of free gas for households and increases in the minimum wage and public sector salaries.

Consumers attempted to shield their savings by purchasing goods such as appliances and cars, and moving funds into dollars and euros, which widened the current account deficit and eroded the central bank’s foreign currency reserves.

The Turkish president changed course following his re-election, conceding that a more conventional economic policy was the only way to pull the country back from the brink of a worsening crisis.

Turkey’s central bank has increased its main interest rate more than 40 percentage points since the new programme began in June last year. Şimşek has employed a range of measures, including petrol tax rises, in an attempt to reduce inflation, narrow the current account deficit and rebuild central bank foreign currency reserves.

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The new measures have helped woo international investors who had fled Turkey’s markets in recent years. Turkey last week sold its biggest ever dollar-denominated bond.

The turn higher in real rates is a key achievement for Şimşek’s programme. Economic officials are betting that positive real interest rates will help ease some of the economic imbalances by heightening the allure of holding funds in Turkish savings accounts rather than utilising goods and foreign currencies as a store of value.

Despite the progress, investors and analysts say Turkish policymakers have a long way to go before the economy returns to a steadier footing. They are also concerned about how long Erdoğan will stick with the new programme, which has dented his popularity since many Turks are still not feeling the benefits of easing inflation.

Erdoğan’s political party faced its biggest-ever defeat in local elections this March, with the economy playing a key role in the poor performance. But analysts say authorities are betting that slower price rises will ease the pressure on the government, with the next round of general elections set for 2028.

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“The tightening of financial conditions and monetary policy is beginning to contribute to the return to a disinflationary path,” said Istanbul-based economist Haluk Bürümcekçi.

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