A cut in interest rates was looking less likely today after figures showed mortgage borrowing hit a record high last month.

Figures from the Bank of England showed mortgage lending jumped during September with commitments totalling a record £20.7 billion, some £1.6 billion higher than the average in the three months to August.

Once repayments and redemptions are taken into account, lending grew by £6.9 billion, or 1.1 per cent, in September, some £100 million higher than the rise in August. The number of loans approved for house purchase during the month rose to 117,000 compared with the average of 111,000 in the three months to August.

Consumer credit remained buoyant, rising by £2 billion, or 1.3 per cent, in September, which was similar to August's figure.

HSBC economist John Butler said: "Consumers' appetite for borrowing is still accelerating.

"Consumers are still extremely confident and their appetite for borrowing is not slowing, rather it is picking up and this has all been achieved without further rate cuts.

"If the Bank cuts rates further it will accelerate this.

"We are getting to a point where consumer debt levels are getting so high they are starting to look vulnerable."

He said that around ten per cent of total consumer spending was now being financed through borrowing, which was near the absolute peak of the late Eighties.

He added: "This has got to mean rates on hold for the near future. I don't see any short-term interest rate cut."

George Buckley, economist at Deutsche Bank, said: "There is no evidence to suggest the consumer is slowing down at all."

The Bank of England has held rates at four per cent since last November.

Economists are divided over whether it will cut the cost of borrowing next month to boost growth amid a tough global environment and fragile stock markets.

The Bank will announce its decision on Thursday, November 7.