16 January 2015
Figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 3% in November 2014, compared with the same month the previous year and increased by 10% in the twelve months to November.
Retail store and online credit new business was 4% higher in November 2014 than in the same month a year earlier. It was a quieter month for the second charge mortgage market, as new business grew 7% by value, while falling 8% by volume.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The run-up to Christmas usually sees a strong performance by the retail store and online credit sector and 2014 was no exception. New business in this sector reached £638 million in November, its best November performance for at least three years.”
Table 1: New consumer credit lending
Nov 14 |
% change on prev. year |
3 months to Nov 2014 |
% change on prev. year |
12 months to Nov 2014 |
% change on prev. year |
|
Total FLA consumer finance (£m) |
5,850 |
+3 |
19,311 |
+8 |
72,668 |
+10 |
|
||||||
Data extracts: |
||||||
Retail store and online credit (£m) |
638 |
+4 |
1,727 |
+5 |
6,350 |
+9 |
Credit cards & personal loans (£m) |
3,140 |
0 |
9,464 |
+3 |
37,652 |
+5 |
Second mortgages (£m) |
45 |
+7 |
146 |
+19 |
556 |
+29 |
Car finance (£m) |
1,771 |
+11 |
7,069 |
+15 |
24,505 |
+20 |
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 instalment credit providers.
- In 2013 FLA members provided £89.0 billion of new finance to UK businesses and households. £66.6 billion of this was in the form of consumer credit representing almost a third of all unsecured lending in the UK.