Asset Finance


Consumer Finance


Motor Finance


Continued growth in consumer finance

10 October 2016

New figures released today by the Finance & Leasing Association (FLA) show growth of 16% in consumer finance new business in August, compared with the same month last year.

Credit card and personal loan new business together grew by 17% compared with August 2015, while retail store and online credit new business increased by 6% over the same period.

The second charge mortgage market reported new business up 6% by value and volume in August, compared with the same month last year.

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

“After a quiet July, all of the main consumer finance products reported new business growth in August, reflecting continued consumer confidence in the general economic outlook.

“Second charge mortgage new business volumes grew for the first time since February, following the market’s transfer to the FCA’s mortgage regime in March.”

Table 1: New consumer credit lending

Aug 2016

% change on prev. year

3 months to Aug 2016

% change on prev. year

12 months to Aug 2016

% change on prev. year

Total FLA consumer finance (£m)

6,836

+16

20,733

+6

86,230

+10

 

Data extracts:

Retail store and online credit (£m)

478

+6

1,513

+1

6,679

+3

Credit cards & personal loans (£m)

3,865

+17

10,901

+6

43,861

+8

Second charge mortgages (£m)

73

+6

216

-1

889

+17

Car finance (£m)

1,991

+17

6,944

+9

30,805

+15

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.