Consumer finance new business up by 10% in August

5 October 2018

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business in August grew by 10% compared with the same month last year.

Credit card and personal loan new business together grew by 9% compared with August 2017, while retail store and online credit new business increased by 7%. Second charge mortgage new business fell 2% by value and grew 6% by volume over the same period.

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

ā€œGrowth in consumer finance new business in August reflected a strong retail sales performance over the same period. In particular, the value of retail sales made by household goods stores grew at its strongest monthly rate for more than a decade.ā€

 Table 1: New consumer credit lending

 

Aug 2018

% change on prev. year

3 months to Aug 2018

% change on prev. year

12 months to Aug 2018

% change on prev. year

Total FLA consumer finance (£m)

8,172

+10

25,515

+9

102,751

+8

 

           

Data extracts:

           

Retail store and online credit (£m)

708

+7

2,175

+5

9,375

+9

Credit cards & personal loans (£m)

4,423

+9

13,274

+10

51,469

+9

Second charge mortgages (£m)

92

-2

282

-1

1,022

+2

Car finance (£m)

2,517

+14

8,607

+12

36,772

+8

 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 2017, FLA members provided £128 billion of new finance to UK businesses and households. £96 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2017.
  3. For media enquiries, please contact the FLA press office on 020 7420 9656.

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