Finance & Leasing Association6 August 2015
New figures released today by the Finance & Leasing Association (FLA) show an 11% rise in consumer finance new business in June, compared with the same month last year, and 7% growth in Q2 2015 overall.
Retail store and online credit grew by 5% in June compared with the same month in 2014. The value of second charge mortgage new business grew by 31% in June, while the number of new mortgages increased by 7% compared with June 2014. The average second charge mortgage advance in June was around £38,000.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“June saw stronger growth across the main product lines as consumers used responsibly-provided credit to support essential household purchases. New consumer credit provided by FLA members grew by 6% in the first half of 2015 compared with the same period in 2014, which was broadly in line with growth in the overall UK market.”
Table 1: New consumer credit lending
| Jun 2015 |
% change on prev. year |
3 months to Jun 2015 |
% change on prev. year |
12 months to Jun 2015 |
% change on prev. year |
|
| Total FLA consumer finance (£m) |
6,772 |
+11 |
19,502 |
+7 |
76,167 |
+6 |
|
|
||||||
| Data extracts: |
||||||
| Retail store and online credit (£m) |
530 |
+5 |
1,537 |
+3 |
6,450 |
+4 |
| Credit cards & personal loans (£m) |
3,391 |
+7 |
9,888 |
+3 |
39,080 |
+1 |
| Second charge mortgages (£m) |
63 |
+31 |
181 |
+27 |
666 |
+26 |
| Car finance (£m) |
2,440 |
+17 |
6,930 |
+15 |
26,308 |
+14 |
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 2014, FLA members provided £100 billion of new finance to UK businesses and households. £74 billion of this was in the form of consumer credit representing almost a third of total new consumer credit written in the UK last year.
