Finance & Leasing Association6 March 2014
Figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 18% in January to £5.6 billion, compared with the same month in 2013. Retail store and online credit grew by 21% to £482 million in January, compared with the same month last year. Second charge mortgage lending grew by 47% to £44 million and personal loans and credit cards were also up by 13% to almost £3.2 billion over the same period.
Commenting Geraldine Kilkelly, Head of Research and Chief Economist at the FLA said: “January saw the strongest rise in new business for more than a year. Private consumption growth will continue to be an important component of the economic recovery in 2014, supported by consumer credit. “New FLA sponsored research by Oxford Economics suggests that there will be growth across most of the main consumer credit sectors this year.”
Table 1: New consumer credit lending
| Jan 14 |
% change on previous year |
3 months to Jan 2014 |
% change on previous year |
12 months to Jan 2014 |
% change on previous year |
|
| Total FLA consumer finance (£m) | 5,613 |
+18 |
17,116 |
+12 |
66,793 |
+7 |
| Data extracts: | ||||||
| Retail store and online credit (£m) | 482 |
+21 |
1,823 |
+10 |
5,935 |
+4 |
| Credit cards & personal loans (£m) | 3,158 |
+13 |
9,716 |
+6 |
35,872 |
-1 |
| Second mortgages (£m) | 44 |
+47 |
123 |
+46 |
459 |
+38 |
| Car finance (£m) | 1,677 |
+31 |
4,723 |
+27 |
21,186 |
+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.
- In 2013 FLA members provided £88.3 billion of new finance to UK businesses and households. £65.9 billion of this was in the form of consumer credit representing almost a third of all unsecured lending in the UK.
