North East towns top the table of personal loan debt in Britain

People living in two parts the North East have some of the highest levels of personal loan debt in Britain, according to figures published by major lenders

People living in two parts the North East have some of the highest levels of personal loan debt in Britain, according to figures published by major lenders.

The figures, which have been released jointly by the British Bankers’ Association (BBA) and the Council of Mortgage Lenders (CML), aim to give a more detailed picture of how borrowing by people and businesses varies across more than 9,000 postcode sectors.

They show that people living in the NE66 4 postcode covering Alnwick and a number of surrounding villages have an average debt of £2,065, the third highest amount in the country, while the NE13 9 postcode covering Dinnington and Wideopen, on the outskirts of Newcastle, where people have an average debt of £1,513, is also in the top 10.

The figures also show that there is a total of £26.1bn still owed on mortgages in the North East.

BBA chief economist Richard Woolhouse said: “We’ve been working hard to make this data as accurate and comprehensive as possible and it now covers 96% of lending to smaller businesses and 99% of personal loans by postcode sector.

“But this data is complex and it remains very difficult to draw firm conclusions about lending at a local level. However, this work underlines how banks are in the business of lending to companies and people wherever they are based in Great Britain.”

The lenders that have contributed to the figures are Barclays, Lloyds Banking Group, HSBC, RBS Group, Santander and Clydesdale, Nationwide Building Society and Yorkshire Bank.

When combined with population records, the research showed that in the Bath postcode sector of BA1 9, people owe £2,311 per head, which is the highest amount of personal loan debt per person in Britain.

This is followed by the postcode sector of EC1V 2 in London, which covers parts of Islington, which has the second highest level of personal debt per head, at £2,188. Other high debt figures were recorded in Peterborough, Galashiels and Leeds.

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