Men are 59% more likely to take out a loan compared to women
New data from personal finance comparison website, Quotezone.co.uk, has found that men are 59% more likely to take out personal loans than women. With Covid-19 causing the largest increase in the jobless rate in five years, and the furlough scheme continuing to prop up 11 million more jobs*, households across the country are continuing to face financial uncertainty.
Quotezone.co.uk’s findings, spanning data from 2019 to 2020, show that the average age of someone taking out a loan is 36, and the average loan amount is £16,000. Through furlough and reduced hours, the pandemic has applied additional pressure to long-standing financial obligations such as a mortgage or childcare commitments, meaning that younger generations are more likely to take out loans to help repay debts.
Interestingly, however, personal loan quote volumes actually fell by 5% during the pandemic, as did the amount borrowed – in 2019 the average sum borrowed was £18,000, which dropped to £15,000 during lockdown. Debt consolidation loans also decreased, showing a 44% drop during the same period and changing the order of the top three reasons customers take out loans to firstly, car purchase, then home improvement, followed by debt consolidation.
New car purchase loans were one of a small number of items that actually increased throughout 2020 by 3%, with home improvement increasing by 47%, along with business loans, car repairs, household goods, mortgage support and payday loans.
Greg Wilson, Entrepreneur, CEO and Personal Finance Comparison Expert at Quotezone.co.uk comments: “Our loans data has some interesting insights, suggesting people have been more cautious with their money during the pandemic, borrowing less and spending it on items closer to home such as new cars and renovations. This trend could be here to stay, bolstering bank accounts with additional savings, although there is the risk that the easing of lockdown measures could trigger a return to extravagance for some as consumers race to try and book holidays and hit the shops.
“Either way, it is very important that people seek professional financial advice from qualified financial advisors before making any major financial decisions.
“Our comparison website aims to bring more transparency to complicated topics such as the purchasing of insurance and personal finance products, so consumers can easily see what is on offer across the market, and compare for themselves – helping them get policies and products that actually meet their individual needs, at a competitive price. The value of being able to shop around and all from the safety of your own home has also never been so important.”
Quotezone.co.uk is one of the UK’s largest comparison websites, recommended by 97% of reviewers and helps around 3 million users every year, with over 400 insurance brands across 60 different products including personal and business finance options such as secured loans plus quotes for car, home, van and business insurance.
This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.