Banks are taking advantage of extremely low rates when purchasing a loan to make record profit margins. When these banks loan to consumers, they are borrowing the money to lend at a 3.29 per cent gap. This means that the difference between the rate at which the banks themselves borrowed money and the rate that they offered to the customers for a fixed rate mortgage differed by 3.29. This is the highest gap since record keeping started, according to Moneyfacts, the finance website.

This means, for example, on a 150,000 pound mortgage banks have been making an additional 150 pounds a month from homeowners. They have been benefitting for almost two years now, ever since the base rate hit 0.5 per cent. More than five million owners have fixed rate mortgages.

As expected, when these figures hit the media, banks were accused of hoarding cash. Even though families are struggling to repay the loans.

"Banks have enjoyed unprecedented support from the taxpayer and so it is important that they step in for the aspirational homeowner with reasonable rates as the economy recovers, said Grant Shapps, housing minister, when commenting on the attitude banks should exhibit as recovery times roll on.

The fixed rate mortgages are still the loan product of choice for many first time home buyers. This is due to the uncertainty of when rates will start going back up.

Michelle Slade, with Moneyfacts.co.uk, commented on borrowers feelings, saying: "Borrowers will be angered that they continue to pay the price for mistakes made by lenders particularly whose who have accepted government funding."