6 June 2014
Figures released today by the Finance & Leasing Association (FLA) show that new business grew by 7% in April 2014, compared with the same month last year. Credit card finance and personal loans grew by 3% in the same period, as did retail store and online credit. The second charge mortgage market in April reported the value of new business up by 21%, although the number of new contracts fell slightly, by 2% compared with the same month in 2013.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “Growth rates in April across the main consumer finance sectors were more modest than in recent months. Nevertheless, FLA members’ share of the UK consumer credit market increased to 33.5% in the twelve months to April, up from 33.4% in March.
“April 2014 also saw a big change to the way in which consumer credit is regulated in the UK, with the introduction of the Financial Conduct Authority’s (FCA) new supervisory regime.”
Table 1: New consumer credit lending
Apr. 14 |
% change on prev. year |
3 months to Apr. 2014 |
% change on prev. year |
12 months to Apr. 2014 |
% change on prev. year |
|
Total FLA consumer finance (£m) | 5,827 |
+7 |
18,218 |
+13 |
69,475 |
+10 |
Data extracts: | ||||||
Retail store and online credit (£m) | 459 |
+3 |
1,408 |
+8 |
6,045 |
+6 |
Credit cards & personal loans (£m) | 3,055 |
+3 |
9,005 |
+7 |
37,007 |
+3 |
Second mortgages (£m) | 46 |
+21 |
139 |
+38 |
497 |
+38 |
Car finance (£m) | 1,966 |
+13 |
6,777 |
+24 |
22,500 |
+25 |
Note to editors:
- 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 short-term credit lenders, and instalment credit providers. 2. In 2013 FLA members provided £88.9 billion of new finance to UK businesses and households. £66.5 billion of this was in the form of consumer credit representing almost a third of all unsecured lending in the UK.