Mortgage lenders have predicted that interest rates will not increase until at least 2013.
At the Mortgage Business Expo last week, representatives from Northern Rock, Barclays, GE Money Home Lending, Nationwide and Platform all agreed that an increase in 2012 is unlikely.
Barclays intermediary channel director David Finlay says his view is that rates will not increase until at least 2014.
Bank rate was reduced to 0.5 per cent in March 2009 and has stayed at the same record low since then.
Speaking at a panel debate on current issues in the lending market, lenders were also unanimous on predictions that gross lending will remain flat at around £130bn in 2012.
Finlay and outgoing Nationwide head of corporate accounts Paul Howard agreed that gross lending will increase to £140bn in 2013 while GE Money Home Lending sales director Mark Snape estimated it will rise to up to £150bn in 2013.
Your Mortgage Decisions director Martin Wade says: “I would agree that we will not see an increase to base rate until 2013. The only reason the economy is not in a worse state is because mortgages are more affordable. Putting the base rate up would be a disastrous move in terms of a recovery.”