Personal loans 2025: what Britain borrowed for this year
Written by
Tuesday 16th December 2025
Last updated: 16th December 2025
Brits continued to invest in life’s big moments throughout 2025 - from upgrading their homes to booking dream holidays and driving away in new cars.
At Novuna Personal Finance, we’ve analysed our lending data to reveal what the UK borrowed for in 2025, when demand peaked, and which regions spent the most. The results offer a fascinating snapshot of the nation’s financial priorities over the past year.
New year, new wheels
Cars remained one of the UK’s biggest borrowing priorities in 2025, with the average vehicle loan reaching £13,046. One month stood out above the rest.
January accounted for 14% of all car loans, making it the most popular time of year to finance a vehicle. The familiar “new year, new wheels” mindset was clear, as drivers started the year ready for a change.
This trend reflected wider market behaviour too, with strong January car research, resilient demand for electric vehicles, and growing confidence around financing higher-value purchases.
Spring and summer also proved popular for car finance, with May contributing a further 11% of vehicle loans as buyers took advantage of seasonal stock and used-car deals.
Monthly share of vehicle loans:
| Month | Share |
| January | 14% |
| February | 10% |
| March | 9% |
| April | 9% |
| May | 11% |
| June | 8% |
| July | 10% |
| August | 8% |
| September | 7% |
| October | 7% |
| November | 7% |
Holiday fever
Travel was firmly back on the agenda in 2025. Whether it was family holidays, beach escapes or city breaks, many households prioritised time away - often with the help of finance. The average holiday loan came in at £6,599, with borrowing spiking during key booking periods.
May and July were the biggest months for holiday borrowing, each accounting for 14% of all travel-related loans. Our data suggests many people used finance in May to secure their summer plans early, while July saw a second peak as rising air fares and school-holiday costs pushed budgets further.
Steady borrowing through spring and early autumn shows that travel confidence stayed strong throughout the year, with holidays remaining an important priority for UK households.
Monthly share of holiday loans:
| Month | Share |
| January | 9% |
| February | 7% |
| March | 8% |
| April | 9% |
| May | 14% |
| June | 9% |
| July | 14% |
| August | 9% |
| September | 6% |
| October | 8% |
| November | 7% |
Britain’s DIY boom
Home improvement remained another major reason to borrow in 2025, with the average home improvement loan reaching £12,274. One region stood out above all others.
The North-West was Britain’s home improvement capital, accounting for 13% of all home upgrade loans - more than both London and the South-East, which each represented 11%.
From kitchen upgrades and bathroom refits to extensions and renovations, homeowners across the UK continued to invest in their properties. Scotland, the West Midlands and the East of England also showed strong demand for home improvement finance throughout the year.
Regional share of home improvement loans:
| Region | Share |
| East Midlands | 5% |
| East of England | 10% |
| Greater London | 11% |
| North-East | 5% |
| North-West | 13% |
| Northern Ireland | 4% |
| Scotland | 10% |
| South-East | 11% |
| South-West | 7% |
| Wales | 5% |
| West Midlands | 10% |
| Yorkshire & Humber | 9% |
What Novuna Wrapped 2025 tells us
Theresa Lindsay, Chief Marketing Officer at Novuna, said:
“From the cities leading Britain’s home makeover boom to the summer months when everyone raced to book a break, Novuna Wrapped 2025 shows where households chose to put their money this year. Whether it was upgrading the home, locking in a holiday or picking up new wheels, our data reveals people using finance to make big life moments happen.”
Supporting life’s bigger plans
At Novuna Personal Finance, we provide personal loans designed to support real-life goals, whether that’s improving your home, funding a holiday or spreading the cost of a vehicle.
With clear terms, fixed monthly repayments and no surprises, personal loans can be a straightforward way to plan ahead with confidence.
Written by
Anna Stacey is a skilled content writer based in Lincolnshire, specialising in the financial services industry. With over four years of experience in the digital landscape, she has an aptitude for crafting informative and engaging content that addresses a range of customer needs. Spanning diverse topics, from finance and lending to broader digital marketing trends, Anna is committed to delivering customer-centric content that not only educates but also empowers readers to make informed decisions.
