UK consumers set to be handed enhance with zero-interest bank cards forward of Christmas

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Your assist makes all of the distinction. Learn extra Lenders are poised to increase interest-free durations on bank cards because the festive season approaches, a brand new survey of banks and constructing societies reveals.

The Financial institution of England’s Credit score Circumstances Survey reported that interest-free phrases for each steadiness transfers and purchases have already lengthened in latest months, a development anticipated to proceed over the subsequent three months.

Nonetheless, the identical quarterly report additionally anticipates an increase in bank card defaults within the coming months.

Carried out in September for the third quarter of this yr, this survey types a part of the Financial institution’s function in sustaining monetary stability, although its findings don't essentially replicate its official views.

Lenders offered knowledge overlaying modifications as much as the tip of August.

They have been additionally requested for his or her expectations for the three months to the tip of November, relative to the three months from June to August.

<img src="https://static.independent.co.uk/2025/10/16/10/4c234e8811215c6a5bc293b686f77d72Y29udGVudHNlYXJjaGFwaSwxNzYwNjkxMTU2-2.37631277.jpg" srcset="https://static.independent.co.uk/2025/10/16/10/4c234e8811215c6a5bc293b686f77d72Y29udGVudHNlYXJjaGFwaSwxNzYwNjkxMTU2-2.37631277.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/10/16/10/4c234e8811215c6a5bc293b686f77d72Y29udGVudHNlYXJjaGFwaSwxNzYwNjkxMTU2-2.37631277.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="The Bank of England’s Credit Conditions Survey said lenders reported that the length of interest-free periods on credit cards for balance transfers and for purchases had both increased in the past few months" class="sc-1mc30lb-0 ggpMaE"/> The Financial institution of England’s Credit score Circumstances Survey stated lenders reported that the size of interest-free durations on bank cards for steadiness transfers and for purchases had each elevated up to now few months (Andrew Matthews/PA) Lenders stated that demand for mortgages from house consumers was unchanged up to now few months and was anticipated to be unchanged within the three months forward.

Demand for re-mortgaging elevated up to now few months and was anticipated to extend within the three months forward.

The report additionally discovered that demand for company lending from small and large companies barely elevated whereas demand from medium corporations was unchanged up to now few months.

Demand for company lending within the subsequent few months was anticipated to extend barely for small, medium and huge companies.

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Mark Harris, chief government of mortgage dealer SPF Non-public Purchasers, stated: “Lenders stay eager to lend and have the funds accessible to take action.

“The previous few months has seen them easing affordability standards, rising the borrowing potential of many mortgage candidates.”

Karim Haji, world and UK head of economic companies at KPMG stated: ”With the latest vitality worth cap rise and inflation nonetheless elevated, lenders will likely be watching intently to make sure affordability pressures don’t translate into wider credit score stress.”