People living in the capital are more likely to get a personal loan, according to data released by loan broker Freedom Finance.
In its analysis of postcodes where most loans are paid out, half of the top 10 ‘hot spots’ are in Greater London – with residents in Romford, Croydon, Southall, Ilford and Twickenham scoring high on Freedom Finance’s index.
The index of 60,000 Freedom Finance customer records was analysed by credit reporting agency Equifax and weights the amount of loans paid out with the proportional population of each postcode area to determine which UK towns are most likely to get a loan.
The research also found that Cardiff and Newport were amongst the top postcode areas for being accepted for a personal loan.
Freedom Finance also broke the analysis down by demographic profiles and found that ‘young city dwellers’ were the most likely demographic to be paid out a loan, suggesting one reason why areas in Greater London performed so well.
Nicola Georgiou, managing director of Freedom Finance, said: “Although the UK’s economic growth is now on track, our analysis shows that there is a still a ‘two-speed’ recovery in consumer confidence between London and the rest of the country. Borrowers in Greater London are more likely to be accepted and paid out a loan, suggesting that residents in and around the capital have more solid financial foundations.
“What many people don’t realise is that being accepted for a loan does not rely on being well-off but rather on being financially savvy when it comes to applying for the most suitable products. Using specialist loan brokers with ‘soft search’ technology such as Freedom Finance to source the right product for your individual circumstances and credit score is the best approach to securing a loan to best suit your needs.”
