Although mortgage rates fell in 2011 because of lower wholesale costs and increased competition — with the average five-year fixed loan dropping from 5.24% to 4.57% — lenders raised fees to compensate.

By the time of deregulation in 1981, it was starting to have trouble coping with rising interest rates and lower fixed loan rates.

Last week it was revealed that landlords are rushing to lock into fixed loans ahead of the expected rate hike.

The group's debts are secured on fixed loans at low interest rates until 2012 and it still has plenty of headroom against its loan covenants.

They also need custom, which means they are offering five-year fixed loans with rates below 2 per cent - absurdly cheap.