Ashley Webb, UK economist at consultancy Capital Economics, said:"September's money and credit figures point to further signs that consumers have been become more cautious in response to the weakening economic outlook."
The Bank is due to raise the cost of borrowing again this week despite the looming threat of recession.Governor Andrew Bailey had warned of a faster rise in Bank rate before a series of government U-turns - and the collapse of the Truss premiership - undid some of the market damage inflected by the mini-budget.Nevertheless, financial markets still expect a 75 basis points rise to 3% on Thursday.Commentators have warned that the era of cheap home loans is now at an end as a result of the chaos.
Alice Haine, personal finance analyst at investment platform Bestinvest, said:"The panic in the market in the first three weeks of September might have been driven by rising interest rate expectations - with the Bank of England increasing the base rate by 50 basis points on September 22 to 2.25% - but the situation escalated dramatically when former chancellor Kwasi Kwarteng unveiled his radical fiscal plan of unfunded tax cuts a day later.
The latest data from Moneyfacts showed average two-year fixed mortgage costs at a rate just under 6.5%.Mark Harris, chief executive of mortgage broker SPF Private Clients, said:"With another interest rate rise likely this week, borrowers concerned about their mortgage should seek advice from a broker to find out what options are available."
With all the products removed because of the dateless Tories and the disaster of a mini budget are we surprised?
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