The base rate of interest could be reduced twice in the first half of 2008, according to an industry expert.

Howard Archer, chief UK and European economist at Global Insight, predicts a rate cut in February and again in May.

This could see rates fall to 5.25 per cent - possibly reducing repayments on secured loans.

But he adds that an earlier rate cut should not be ruled out, with monetary policy committee member David Blanchflower voting for a decrease at the latest meeting of the Bank of England's rate-setting body.

Consumers who are having trouble meeting repayments on existing lending due to the recent interest rate increases might consider secured loans as a means of obtaining extra funds until any future rate cuts do materialise.

While Mr Blanchflower was the only committee member to vote for a rate cut in the October meeting, none of the nine rate-setters have argued in favour of an increase since the 0.25 per cent rate hike in July.ADNFCR-1287-ID-18343421-ADNFCR

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