Borrowers are concerned that if they go elsewhere for a loan and are rejected it could leave an indelible mark on their credit record, the website claims.

Customers in general prefer what is comfortable for them, which could be something as simple as speaking to someone in their local branch whom they recognise.

“Some people don’t want to risk the embarrassment of being turned down,” said Nick White, head of personal finance at uSwitch.com. “If there is a doubt in your mind about being accepted for credit you may turn to the high street.”

In general, consumers feel more comfortable talking to a bank they have dealt with for years, Mr White said.

“There is probably a feeling that you are more likely to get accepted by your bank,” he continued. “There are worries about what [being rejected for a loan] will mean for their credit record.”

Research from the same website shows that high street lenders may be charging double the rates of their competitors and so may not offer the same financial, rather than psychological peace of mind.

To read more about loans, click here.

© Adfero Ltd