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Consumer Finance


Motor Finance


Consumer finance up 8% in July

11 September 2015                                                                               

New figures released today by the Finance & Leasing Association (FLA) show 8% growth in consumer finance new business in July, compared with the same month last year.

Point-of-sale consumer car finance grew by 15% in the same period, while retail store and online credit was 4% higher than in July 2014. The second-charge mortgage market reported new business up 37% by value in July, while the number of new second-charge mortgages grew by 5% to 1,826 compared with July 2014.

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

“July saw growth across the main consumer finance products. Over the last twelve months consumer finance provided by FLA members grew by 6%, which is line with our own research which suggests growth of between 7-8% in UK new consumer credit in 2015 as a whole.”

Table 1: New consumer credit lending

Jul 2015

% change on prev. year

3 months to Jul 2015

% change on prev. year

12 months to Jul 2015

% change on prev. year

Total FLA consumer finance (£m)

6,639

+8

19,705

+7

76,650

+6

 

Data extracts:

Retail store and online credit (£m)

519

+4

1,546

+2

6,469

+4

Credit cards & personal loans (£m)

3,412

+4

10,049

+3

39,201

+1

Second charge mortgages (£m)

74

+37

196

+31

686

+27

Car finance (£m)

2,244

+15

6,871

+14

26,608

+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 2014, FLA members provided £100 billion of new finance to UK businesses and households. £74 billion of this was in the form of consumer credit representing almost a third of total new consumer credit written in the UK last year.