Many banks across the UK were shocked by the announcement that Abbey, one of the largest lenders in the UK, made regarding the fact that their flexible loan rates were about to be lowered. It was probably a shock to other banks since they have continued to charge premium rates on their flexible loans.This seems to be the norm in the lending industry lately as they continue to try and minimize the amount of bad loans and the risk of more of them occurring. Most analysts agree that Abbey has made a wise business decision and that they will benefit from an influx of new business as a result. No doubt that the consumer perceives this as excellent news at a time when the housing industry is literally in a shambles.A spokesperson for Abbey said that they were pleased about the move to improve interest rates on their flexible loans for the benefit of their customers despite the fact that the market remains somewhat challenging. It was also noted that Abbey would be balancing the offering of competitive rates with customer service levels due to recent marketing moves by their competitors. Experts are hopeful that other UK banks will follow suit and reduce their rates as well.
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