Asset Finance


Consumer Finance


Motor Finance


Consumer finance in July at same level as last year

8 September 2016

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business in July was at a similar level to the same month last year.

Credit card and personal loan new business together fell by 1% compared with July 2015, while new business in the second charge mortgage market was down 9% by value and 18% by volume over the same period.

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

“FLA consumer finance new business grew by 10% in the first seven months of 2016, despite a relatively quiet month in July. The FLA’s latest research carried out by Oxford Economics suggests that new UK consumer credit will be broadly stable in 2017. Maintaining consumer confidence will remain a key task for the Government, the Bank of England and other public bodies in the coming months.”

Table 1: New consumer credit lending

Jul 2016

% change on prev. year

3 months to Jul 2016

% change on prev. year

12 months to Jul 2016

% change on prev. year

Total FLA consumer finance (£m)

6,724

0

21,214

+6

85,288

+9

 

Data extracts:

Retail store and online credit (£m)

510

-2

1,588

+3

6,651

+3

Credit cards & personal loans (£m)

3,485

-1

10,817

+5

43,306

+7

Second charge mortgages (£m)

73

-9

212

0

885

+19

Car finance (£m)

2,281

+1

7,527

+9

30,513

+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.