UK loans statistics - December 2025 | MoneySuperMarket
UK loans statistics - 2025
Whether you're financing a car, renovating your home, or consolidating debt, choosing the right loan can help you manage your finances with confidence. This page takes a look at some of the key trends and statistics for loans taken out in the UK, collated from our own data as well as trusted third-party sources.
Average loan amount
The following data represents the average loan amount borrowed by MoneySuperMarket customers, in the most recent month.
Loan Purpose | Average Loan Amount |
|---|---|
Home improvement | £11926.30 |
Debt consolidation | £12390.83 |
Buying a car | £12507.71 |
Holiday | £4736.77 |
Wedding | £9714.28 |
Most common terms per loan amount
For all loan amounts above £5k, the most common loan term was 5 years, according to MoneySuperMarket data from September 2025.
Loan Amount | Most common loan term |
|---|---|
£1,000 - £2,999 | 2 years |
£3,000 - £4,999 | 3 years |
£5,000 - £7,499 | 5 years |
£7,500 - £14,999 | 5 years |
£15,000 - £19,999 | 5 years |
£20,000+ | 5 years |
Impact of income on APR offered
There is also a strong correlation between income and the APR you will pay on a loan, those earning £40,000 and more received the lowest APRs, according to MoneySuperMarket data from September 2025.
Income banding | Average APR |
|---|---|
£0 - £9,999 | 23.7% |
£10,000 - £19,999 | 19.6% |
£20,000 - £29,999 | 22.3% |
£30,000 - £39,999 | 18.9% |
£40,000 - £49,999 | 15.9% |
£50,000+ | 13.8% |
Most popular loan purpose by age
People under 35 are most likely to use a loan to buy a car, while those 45 and above are most likely to be using a loan to pay for home improvements. That's according to MoneySuperMarket data from September 2025.
Age band | Most popular loan purpose |
|---|---|
Under 25 | Car loan |
25 to 34 | Car loan |
35 to 44 | Debt consolidation |
45 to 54 | Home improvement |
55 to 64 | Home improvement |
65 to 74 | Home improvement |
75+ | Home improvement |
UK household debt trends
Average personal loan debt per household, excluding student loans, has increased from £5,545 in 2024 to an all-time high of £5,711 in February 2025, according to Nimblefins.
Sources and methodology
Live MoneySuperMarket Enquiry Date
MoneySuperMarket loan data - September 2025
NimbleFins - Average household debt UK
Author
Alan Cairns
Senior Content Editor
Alan helps MoneySuperMarket break down complicated financial topics into plain English, to help you find the right deals. When he’s not writing or editing you might find him cycling the South Downs.
