Quarter of personal loan applicants 'seeking half their annual salary'

Analysis of inquiries to MoneySuperMarket found that 10% of applicants wanted to borrow more than their annual income

Households in the UK are increasingly relying on borrowed money with one in four people seeking a loan applying for at least half of their annual income, according to new figures that will add to worries about Britain's mounting personal debt burden.

The latest evidence of a rise in borrowing to fund new car purchases, holidays and to help clear older debts follows a stark warning from the Bank of England that lenders offering money on easy terms risked sparking a fresh financial crisis. Banks, credit card companies and car loan providers could be dicing with a "spiral of complacency", the Bank's director for financial stability said on Monday.