Lenders should take action

Offering his prediction on this weeks base rate decision, he said: "When the base rate came down to its record low three of four months ago, we saw a response in the market that suggested the end of the recession was in sight; there was an increase in the number or mortgage deals available and the green shoots were showing.

"In the last month, however, the number of mortgage products has dropped by a staggering 15 per cent, with the majority being fixed mortgage products that have decreased by nearly a quarter (24%). This coupled with fewer applicants looking for mortgages indicates that the medicine is wearing off and people are feeling low again.

"I expect the base rate to remain at 0.5 per cent this month, however it is essential some form of action is taken and it is now up to the lenders. Consumers are seeing unreasonably high interest rates on credit cards and SVR mortgages, compared to the 0.5 base rate. It is now time the lenders take responsibility and play their part rather than continuing to cripple the economy."