Novuna Wrapped 2025: What Britain Borrowed For This Year – From Home Makeovers to Dream Holidays

Brits splashed out on home upgrades, long-awaited holidays and new wheels in 2025 – and Novuna Personal Finance has crunched the numbers to reveal the real trends behind the nation’s biggest borrowing moments.

From the region leading the renovation race to the months when the UK booked their summer getaways in droves, Novuna Wrapped 2025 lays bare what we borrowed for…and when.

New Year, New Wheels: January Tops the Charts for Car Loans

Cars remained one of the nation’s biggest reasons to borrow – with the average vehicle loan reaching £13,046.

And one month stood out:

January was the UK’s biggest month for car-buying, making up 14% of all vehicle loans. 

The ‘new year, new wheels’ mindset shows up clearly in our data and matches what we saw in the wider market – intense January car-buying research, resilient EV demand and consumers feeling confident enough to finance bigger-ticket vehicles.

Drivers also took advantage of spring stock and summer used-car bargains, with May (11%) also proving popular.

Monthly share of vehicle loans:

Jan 14% | Feb 10% | Mar 9% | Apr 9% | May 11% | Jun 8% | Jul 10% | Aug 8% | Sep 7% | Oct 7% | Nov 7%

Holiday Fever: Borrowing Surged as Brits Booked Their Summer Escape

Whether it was beach holidays, city breaks or long-overdue family getaways, Brits were determined to make 2025 count.

The average holiday loan hit £6,599, and borrowing soared during key booking months.
May and July were the UK’s biggest holiday splurge moments, each accounting for 14% of all travel-related loans.

Rather than cutting back on holidays altogether, our data shows many households used credit strategically in May to lock in their summer getaways – a trend that mirrors wider research showing travel remained a protected priority in 2025.

By July, as air fares and other travel costs surged and helped push inflation higher during the school holidays, our second borrowing peak suggests some families were turning to finance to keep long-planned trips on track despite rising prices.

Steady demand through spring and early autumn shows travel confidence remained high all year.

Monthly share of holiday loans:

Jan 9% | Feb 7% | Mar 8% | Apr 9% | May 14% | Jun 9% | Jul 14% | Aug 9% | Sep 6% | Oct 8% | Nov 7%

Britain’s DIY Boom – And the Region Spending the Most

The UK stayed firmly in makeover mode this year, with the average home improvement loan hitting £12,274.

But one region outspent everyone else…

The North-West is officially Britain’s Home Improvement Capital, making up 13% of all home upgrade loans – more than London and the South-East (both 11%).

Homeowners weren’t shy about refreshing kitchens, building extensions or upgrading bathrooms across the map, with strong activity in Scotland, the West Midlands and the East of England too.

Regional share of home improvement loans:

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%

Theresa Lindsay, Chief Marketing Officer at Novuna, one of the UK’s largest consumer finance companies 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.”