10 October 2014
Consumer finance of continued importance to the economy
New figures released by the Finance & Leasing Association (FLA) show 11% growth in consumer finance new business in the twelve months to August 2014.
Retail store and online credit was up 9% in August, compared with the same month last year, and second charge mortgage new business grew 31% by value and 3% by volume in the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The growth of retail store and online credit illustrates the continued importance of consumer credit to the high street and the economy.”
Table 1: New consumer credit lending
|
Aug 14 |
% change on prev. year |
3 months to Aug 2014 |
% change on prev. year |
12 months to Aug 2014 |
% change on prev. year |
Total FLA consumer finance (£m) |
5,361 |
+3 |
17,487 |
+8 |
71,308 |
+11 |
|
||||||
Data extracts: |
||||||
Retail store and online credit (£m) |
444 |
+9 |
1,461 |
+9 |
6,260 |
+9 |
Credit cards & personal loans (£m) |
3,010 |
-1 |
9,326 |
+3 |
37,420 |
+5 |
Second mortgages (£m) |
46 |
+31 |
144 |
+26 |
533 |
+34 |
Car finance (£m) |
1,519 |
+11 |
5,518 |
+16 |
23,559 |
+22 |
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.