Finance & Leasing Association10 March 2017
New figures released today by the Finance & Leasing Association (FLA) show growth of 10% in consumer finance new business in January, compared with the same month in 2016.
Credit card and personal loan new business together grew by 11% compared with January 2016, while retail store and online credit new business increased by 1%. Second charge mortgage new business fell 6% by value and 11% by volume over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“There was new business growth across most of the main consumer finance products in January, suggesting that consumer confidence remained relatively robust at the start of 2017.
“The latest research from Oxford Economics on behalf of the FLA shows that total new consumer credit in the UK is expected to grow by 1.4% in 2017 as a whole, a more modest rate than in recent years.”
Table 1: New consumer credit lending
| Jan 2017 |
% change on prev. year |
3 months to Jan 2017 |
% change on prev. year |
12 months to Jan 2017 |
% change on prev. year |
|
| Total FLA consumer finance (£m)2 |
7,096 |
+10 |
21,964 |
+7 |
88,713 |
+9 |
|
|
||||||
| Data extracts: |
||||||
| Retail store and online credit (£m) |
451 |
+1 |
1,902 |
0 |
6,569 |
+3 |
| Credit cards & personal loans (£m) |
3,925 |
+11 |
12,158 |
+8 |
45,199 |
+8 |
| Second charge mortgages (£m) |
69 |
-6 |
218 |
-4 |
869 |
+1 |
| Car finance (£m) |
2,347 |
+12 |
6,821 |
+9 |
31,902 |
+11 |
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 2016, FLA members provided £118 billion of new finance to UK businesses and households. £88 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2016.
