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Consumer Finance


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Consumer finance up 4% in August

6 October 2017

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business in August grew by 4% compared with the same month last year.

Credit card and personal loan new business together grew by 4% compared with August 2016, while retail store and online credit new business increased by 7%. Second charge mortgage new business increased 25% by value and 11% by volume over the same period.

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

“The modest growth in consumer finance new business overall in August reflects subdued consumer confidence about the general economic outlook.

“New business grew by 6% in the first eight months of this year, which is in line  with single-digit growth expectations for UK new consumer credit in 2017 as a whole.”

Table 1: New consumer credit lending

 

Aug 2017

% change on prev. year

3 months to Aug 2017

% change on prev. year

12 months to Aug 2017

% change on prev. year

Total FLA consumer finance (£m)

7,155

+4

22,470

+8

91,582

+6

 

      

Data extracts:

      

Retail store and online credit (£m)

501

+7

1,589

+7

6,668

+2

Credit cards & personal loans (£m)

4,038

+4

11,997

+10

46,872

+7

Second charge mortgages (£m)

91

+25

274

+27

974

+10

Car finance (£m)

2,101

+6

7,416

+7

32,924

+7

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.