Loans that have been taken out by borrowers in recent months have been used for buying beach huts and even mobile discos.

"Consolidation" style loans remain popular among debtors, latest data from one of Britain's biggest lenders has revealed.

The high street bank Halifax reviewed its own personal loans data, and found that 54 per cent of applicants took out credit in order to consolidate their debts over the past 12 months. Meanwhile, 23 per cent used the loans to buy a car, while 15 per cent used the money for homes renovation.

However, Halifax also noted that many "less conventional" destinations for the loan money were accepted over the past year - including false teeth, a beach hut and even a mobile disco.

Russell Galley, director of loans at Halifax said: "Our research shows that loans are taken out for a wide variety of reasons. Similar to the last annual review there is a continued trend in the number of people who are looking to invest in themselves and their future."

Personal loan provision from high street banks has come under pressure over the past two years, with the global credit crunch making it harder for the firms to secure funds on the wholesale markets that would then be used to pay for customer loans.

This, added with anxiety over default levels, has led to most products being offered at higher rates and entailing tougher criteria than before.