Asset Finance


Consumer Finance


Motor Finance


Strong growth in consumer finance

14 January 2016

New figures released today by the Finance & Leasing Association (FLA) show 17% growth in consumer finance new business in November 2015, compared with the same month in the previous year.

Retail store and online credit grew by 10% compared with November 2014, while credit card and personal loan new business together increased by 14%. Second charge mortgage new business was up 31% by value and 13% by volume over the same period.

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

“The growth in new business in the run-up to Christmas reflects the strength of consumer confidence.

“New business growth in the twelve month period to November reported by FLA members held steady at 7% and, overall, the value of outstanding consumer credit in the UK at the end of November remained 14% below its 2008 peak.”

Table 1: New consumer credit lending

Nov 2015

% change on prev. year

3 months to Nov 2015

% change on prev. year

12 months to Nov 2015

% change on prev. year

Total FLA consumer finance (£m)

6,887

+17

21,598

+11

79,093

+7

 

Data extracts:

Retail store and online credit (£m)

713

+10

1,833

+6

6,563

+3

Credit cards & personal loans (£m)

3,636

+14

10,384

+8

40,051

+4

Second charge mortgages (£m)

67

+31

210

+30

750

+28

Car finance (£m)

2,179

+23

8,197

+16

27,925

+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 a third of total new consumer credit written in the UK in 2014.