University College London is undertaking £1.2 billion in refurbishment and has more than doubled its borrowing in the past year

Universities have been warned that they are on the brink of a “credit crunch” after embarking on a record borrowing spree despite deep uncertainty over their financial future.

The sector’s debts have risen over the past year to £10.8 billion, three times more than before the financial crash, figures compiled by The Times show.

Five universities, including Southampton, UCL and Imperial College London, have more than doubled their borrowing in the past year to compete in the ever-tougher battle to attract more students from home and abroad.

The move comes amid what experts describe as “unprecedented uncertainty” for higher education, with ministers said to be considering a cut in tuition fees — now the main source of university income — and predictions that Brexit could