New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew in December 2018 by 4% compared with the same month in 2017, and by 5% in Q4 2018 as a whole.

Credit card and personal loan new business together grew in December by 5% compared with the same month in 2017, while retail store and online credit new business held steady. Second charge mortgage new business increased 6% by value and 13% by volume over the same period.

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

“The consumer finance market slowed in the final quarter of 2018 as continued uncertainty about the economic outlook hit consumer confidence.

“2019 is likely to see modest single-digit growth in new consumer credit overall.”

Table 1: New consumer credit lending

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 2018, FLA members provided £137 billion of new finance to UK businesses and households. £104 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2018.
3. For media enquiries, please contact the FLA press office on 020 7420 9656.