Interest rates charged on corporate loans rose sharply in August and growth in lending to individuals slowed, according to data released on Monday by the Bank of England that gave further evidence market troubles were feeding through to the real economy.

The average interest rate for new corporate loans fixed for up to a year - the biggest category of fixed rate corporate debt - rose by 41 basis points between July and August, and 100 basis points over two months.

The figures confirm the findings of the Bank’s quarterly survey of credit conditions, which last week showed the credit squeeze was taking a higher toll on corporate borrowers than on households.

Average interest rates for mortgage borrowers increased less dramatically, rising 17 basis points between July and August for new business and 9 basis points for outstanding mortgages. However, the spread between rates quoted to riskier and mainstream borrowers widened sharply.

Policymakers have made it clear their response to the credit squeeze will depend on how far it affects the price and availability of credit for companies and households. So far, the housing market has proved relatively resilient, although signs of a slowdown after the year’s rises in interest rates have been gathering.

The number of mortgage approvals for house purchase fell from 115,000 to 109,000 in August, the Bank’s data showed, the lowest level since April but still above the long-term average.

“The recent falls in new buyer enquiries finally seem to be feeding through to the mortgage approvals figures,” said Vicky Redwood at Capital Economics, although adding that house prices might not respond for several more months.

Growth in total net lending to individuals also slowed from £10bn in July to £9.5bn in August, reflecting an easing of both secured lending and consumer credit.

“It has been a long time coming but the combination of higher official interest rates and the tighter credit conditions that are emerging from two months of financial turbulence are beginning to have an effect on the borrowing numbers,” said Geoffrey Dicks, economist at the Royal Bank of Scotland.

Michael Saunders, economist at Citigroup, noted that smaller lenders funding themselves from wholesale markets, who had lent most aggressively in recent years, acounted for much of the fall in mortage approvals.