After making six appearances in the first half of the 2007–08 season, Peters was loaned out to Yeovil Town until the end of the season despite interests from Romanian side Steaua Bucharest. Peters then made his Yeovil Town debut a few days later on 2 February 2008, in a 2–0 loss against Huddersfield Town. Despite suffering from ankle injury, Peters returned to the first team and then scored in the last game of the season, in a 3–2 loss against Nottingham Forest. After making fourteen appearances and scoring once, the club were keen on signing him for the next season, but it never happened.
