The BBA has hit back at Moneyfacts claims that lenders are making record profits, by claiming that the increasing cost of mortgage loans is down to the higher cost of banking . Although mortgage profits for lenders are much higher in recent months, with the cost of fixed-rate mortgages climbing considerably, lenders are not simply acting out of greed.

Angela Knight made it clear that UK banks and mortgage lenders now have to put much more money into reserves, holding double the worldwide average. Lenders potential profit margins are undoubtedly high, but with banks unable to access wholesale funding Knight makes a strong case for why this need to be so.

Knight accused Moneyfacts of making claims of lender profiteering without taking everything into account. She also made it clear that the only lenders are currently banks, with many building societies unable to lend.