Finance & Leasing Association9 July 2015
Figures released today by the Finance & Leasing Association (FLA) show growth of 3% in consumer finance new business in May compared with the same month a year earlier.
Point-of-sale consumer car finance grew by 9% in May and the value of second charge mortgage new business increased by 23% compared with May 2014.
By contrast, retail store and online credit fell by 3% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“May was a quieter month for FLA consumer finance providers, but overall the market continued to grow.
“Recent research by Oxford Economics showed just how important FLA consumer finance providers are to the UK economy. In 2014, they funded 7% of all UK consumer spending and supported 247,000 UK jobs.”
Table 1: New consumer credit lending
| May 2015 |
% change on prev. year |
3 months to May 2015 |
% change on prev. year |
12 months to May 2015 |
% change on prev. year |
|
| Total FLA consumer finance (£m) |
6,293 |
+3 |
20,925 |
+7 |
75,443 |
+6 |
|
|
||||||
| Data extracts: |
||||||
| Retail store and online credit (£m) |
497 |
-3 |
1,540 |
+3 |
6,435 |
+5 |
| Credit cards & personal loans (£m) |
3,245 |
-1 |
9,871 |
+2 |
38,774 |
+1 |
| Second charge mortgages (£m) |
59 |
+23 |
186 |
+27 |
651 |
+25 |
| Car finance (£m) |
2,187 |
+9 |
8,335 |
+14 |
25,949 |
+14 |
Note to editors:
- An executive summary of the Oxford Economics research, measuring FLA members’ contribution to the UK economy, can be found on the website.
- Oxford Economics is one of the world’s foremost independent global advisory firms, using industry models and analytical tools to provide reports and forecast trends.
- 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 over a third of total new consumer credit written in the UK last year.
