New data from short-term lender Moneyboat reveals that Lancashire and Yorkshire have the highest proportion of short-term loan customers in the UK, spotlighting sustained financial pressure in the North of England despite easing headline inflation.

While annual inflation dipped to 2.6% in March 2025, down significantly from the 11% peak recorded in 2022*, the day-to-day impact on households remains. According to the latest ONS figures, 93% of British households that experienced a cost-of-living increase in the past month cited rising food prices, while 76% reported higher gas and electricity bills**.

“Inflation may be slowing, but the cost burden on families hasn’t disappeared,” said a Moneyboat spokesperson. “With household bills still elevated, many individuals are just one unexpected cost away from needing short-term financial support.”

UK Counties with the highest proportion of short-term loan customers

County	% of Customers	No. of Customers
Lancashire	7.89%	3,300
Yorkshire	5.50%	2,301
Essex	4.93%	2,062
Kent	4.49%	1,875
Surrey	3.76%	1,571
Staffordshire	2.93%	1,225
Greater London	2.89%	1,208
Hampshire	2.80%	1,169
Cheshire	2.57%	1,073

These figures reveal that financial pressure is being felt across a wide range of regions from post-industrial areas in the North like Lancashire and Yorkshire, to traditionally more affluent counties like Surrey and Greater London.

The diversity of these places suggests that short-term borrowing is no longer confined to any single demographic or income bracket but is instead a nationwide response to ongoing economic uncertainty and rising everyday costs.

Young adults leading loan demand

In addition to regional analysis, Moneyboat’s customer data shows a surge in borrowing among 25–34-year-olds, who now account for 32.3% of customers - the highest across all age groups. This is closely followed by the 35–44 bracket at 30.79%, suggesting that financially active working-age adults are being hit hardest by rent increases, childcare costs, and limited savings buffers.

Age distribution breakdown:

25–34 years – 32.30%
35–44 years – 30.79%
45–54 years – 18.89%
18–24 years – 7.39%
55–64 years – 9.58%
65+ years – 1.05%

Tips for borrowing responsibly: How to apply for a short-term loan safely

If you’re considering a short-term loan, it's essential to protect yourself financially. Here are Moneyboat’s top tips:

Check the lender is FCA-authorised
Always ensure the lender is regulated by the Financial Conduct Authority (FCA). This guarantees you are protected under UK consumer credit laws.
Understand the terms upfront
Read the APR, repayment schedule, and total cost of the loan before signing. Responsible lenders will present this clearly and upfront.
Borrow only what you need
Short-term loans are not designed for long-term borrowing. Only apply for the amount you need and can reasonably repay.
Use credit comparison tools
Sites like MoneyHelper or Check My File can help you compare offers and understand your credit position.
Avoid rollovers or late payments
Missing payments can damage your credit score and lead to additional fees. Make sure the repayment terms work for your budget.
Look for transparency and support
A responsible lender will offer clear communication, no hidden fees, and customer service that helps, not pressures.

“A short-term loan can offer essential breathing room—but only when used responsibly, and with a trusted lender. Our focus at Moneyboat is to lend with transparency and affordability.”

If you'd like to find out more, please visit: www.moneyboat.co.uk