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Consumer Finance


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Consumer finance up 3% in September

9 November 2017

New figures released today by the Finance & Leasing Association (FLA) show growth of 3% in consumer finance new business in September, compared with the same month last year. In Q3 2017, new business grew by 6% compared with the same quarter in 2016.

In September, credit card and personal loan new business together grew by 3% compared with the same month in 2016, while retail store and online credit new business increased by 6%. The value of second charge mortgage new business was similar to September 2016, while new business volumes fell by 2% over the same period.

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

“September saw consumer finance new business grow at its slowest rate since April. With consumer confidence subdued, UK new consumer credit is expected to grow by 3.3% in 2017 as a whole, down from 6.3% in 2016.”

Table 1: New consumer credit lending

 

Sep 2017

% change on prev. year

3 months to Sep 2017

% change on prev. year

12 months to Sep 2017

% change on prev. year

Total FLA consumer finance (£m)

9,009

+3

23,771

+6

91,821

+6

 

      

Data extracts:

      

Retail store and online credit (£m)

565

+6

1,623

+8

6,702

+3

Credit cards & personal loans (£m)

3,858

+3

11,957

+8

46,993

+6

Second charge mortgages (£m)

77

0

259

+16

979

+10

Car finance (£m)

4,146

+2

8,748

+5

33,021

+6

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.
  2. In 2016, FLA members provided £118 billion of new finance to UK businesses and households. £88 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2016.
  3. For media enquiries, please contact the FLA press office on 020 7420 9656.