Loans play a crucial role in the United Kingdom’s financial landscape, with a personal loan being the most popular type of loan in the UK.
For this report, we look at the current statistics of loans and debt in the UK’s economy.
Facts and Figures on UK Lending
- The average interest rate for a £5,000 personal loan was 10.15% as of May 2023, while the average interest rate for a £10,000 personal loan was 5.85%.
- Total gross consumer lending in the UK was £29.15 billion, with an outstanding amount of consumer credit to individuals reaching £212 billion.
- Personal loan rates have doubled in little more than 18 months, with the average rate on new personal loans to individuals standing at 8.27% in May 2023.
- The UK’s total interest payments on personal debt over a 12-month period would have been £64,439 million, an average of £177 million per day, based on June 2023 numbers.
- In 2023, the average total debt per household, including mortgages, was £65,619, and per adult, it was £34,644, around 103.5% of average earnings.
- Household debt of all types is forecast to rise from £2,333 billion in 2023 to £2,478 billion in 2025, making the average total household debt £86,994.
- The average monthly debt from buy now, pay later (BNPL) services in the UK was £207.84.
- Corby in the East Midlands was named Britain’s personal loans capital, with borrowers there making more personal loan inquiries than any other place in the UK.
These statistics highlight the widespread use of loans, and debt in the United Kingdom.