The increase in rates also triggered a flurry of mortgage agreements being withdrawn by lenders.

According to Moneyfacts, the average rate on a two-year fixed mortgage is now 6.07%. This is the first time the average rate has exceeded 6pc since November 2008. Banks and lenders withdrew a record number of mortgage deals in the wake of the mini-budget after huge changes on currency markets.

Between Sept 23 and Oct 1, the number of available mortgage deals fell by 43pc – a loss of 1,703 products, The Daily Telegraph reports. 

Some lenders are gradually relaunching products, with new prices that include higher interest rate forecasts. Nevertheless, the amount of available mortgage deals yesterday was still down 40pc compared with 12 days earlier.

Yesterday, the average rate for a five-year fix yesterday was 5.97pc – up from 4.7pc before the mini-budget, according to Moneyfacts.

Sky News reported that chief executives of Britain’s largest banks including Barclays, Lloyds Banking Group and Natwest are to meet with the Chancellor today to discuss the issue.

A Treasury spokesman said the meeting was “part of ongoing engagement with the financial services sector over recent weeks”.