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Consumer Finance


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Consumer finance up 7% in September

11 November 2016

New figures released today by the Finance & Leasing Association (FLA) show growth of 7% in consumer finance new business in September, compared with the same month last year. In Q3 2016, new business was also up by 7% compared with the same quarter in 2015.

Credit card and personal loan new business together grew by 8% compared with September 2015, while growth in retail store and online credit new business was flat. New business in the second charge mortgage market grew 4% by value and fell 1% by volume over the same period.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:

“Consumer confidence has been relatively robust in recent months, which is reflected by the consumer finance market’s solid performance in the third quarter.

“New business growth of 10% in the first nine months of 2016 was slightly ahead of the FLA’s single-digit growth expectations for 2016 as a whole.”

Table 1: New consumer credit lending

Sep 2016

% change on prev. year

3 months to Sep 2016

% change on prev. year

12 months to Sep 2016

% change on prev. year

Total FLA consumer finance (£m)

8,773

+7

22,371

+7

86,876

+10

 

Data extracts:

Retail store and online credit (£m)

531

0

1,522

+1

6,680

+3

Credit cards & personal loans (£m)

3,736

+8

11,118

+8

44,160

+9

Second charge mortgages (£m)

77

+4

223

0

892

+15

Car finance (£m)

4,048

+9

8,319

+8

31,123

+14

Note to editors:

  1. FLA members in the consumer finance sector include banks, credit card providers, store card providers, second-charge mortgage lenders, motor finance providers, personal loan and instalment credit providers.
  1. In 2015, FLA members provided £110 billion of new finance to UK businesses and households. £81 billion of this was in the form of consumer credit representing almost a third of total new consumer credit written in the UK in 2015.