Borrowers are split on whether to consolidate debts or splash out on holidays or household goods, research from Equiniti Credit Services shows.

Its research report, ‘Great Expectations: The Demanding Market for Credit’, highlights variations in attitudes between age-groups that are creating new opportunities for established and alternative lenders alike.

Motivation for borrowing is split between funding aspirational items such as holidays and household goods (47%) and managing or consolidating existing debt (53%).

Richard Carter, managing director of Equiniti Credit Services, said: “Rarely do lenders focus on applicants to whom they have declined credit.

“This is a mistake as 68% of those surveyed indicated that they would likely accept an alternative loan offer at a higher interest rate, if it was offered to them immediately.”

The report showed a difference in attitudes to technology with 73% of millennials and Generation-X happy to research a loan on their smartphone compared to just 9% of baby boomers.

Carter added: “Going digital is one thing. Going digital in a way that chimes with different customer groups is something different entirely.”