Nice Loans.co.uk > News > Lenders drop summer loan offers

Low summer rates disappear

The low competitive loan offers provided by some lenders at the start of the summer now seem to have been closed.

At the beginning of summer 2007 several online lenders were competing for summer loan marketshare by offering cut-throat loan rates of below six percent for selected customers, but with UK interest rates seeing two step increases and confidence in worldwide finance markets fluctuating at present, those ultra low rates are no longer available.

The Bank of England is not expected to increase rates again in the short term given that inflation rate indicators are looking positive, so the loan rates on offer at present can be expected to remain available for the next few months at least.

Many prospective borrowers typically receive their post-summer credit card bills at this time and once they see the interest rates charged by their credit card providers they may be encouraged to look elsewhere for cheaper forms of borrowing.

With many credit card accounts now carrying some large expense items such as family holidays or bills for home improvement projects, customers are less likely to be able to pay-off their full outstanding balance and so these expensive interest rate charges will come into play, unless they can move their debts to other cheaper forms of lending like personal loans or secured loans.

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