Finance & Leasing Association6 March 2015
Figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business fell by 1% in January 2015 compared with the same month in 2014, but remained 7% up in the twelve months to January.
Point-of-sale car finance grew by 5% in January compared with the same month a year earlier, but there was a modest fall in retail store and online credit of 5% over the same period.
While the value of second charge mortgage new business grew by 13% in January, the number of new second charge mortgages fell by 10% in the same period.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“FLA’s consumer finance sectors reported a relatively quiet start to 2015, but our latest research suggests that UK gross consumer credit will grow by about 7% in 2015 as a whole.”
Table 1: New consumer credit lending
| Jan 2015 |
% change on prev. year |
3 months to Jan 2015 |
% change on prev. year |
12 months to Jan 2015 |
% change on prev. year |
|
| Total FLA consumer finance (£m) |
5,669 |
-1 |
18,031 |
+3 |
74,013 |
+7 |
|
|
||||||
| Data extracts: |
||||||
| Retail store and online credit (£m) |
476 |
-5 |
1,885 |
+3 |
6,373 |
+6 |
| Credit cards & personal loans (£m) |
3,133 |
-4 |
10,042 |
-1 |
38,605 |
+2 |
| Second mortgages (£m) |
51 |
+13 |
150 |
+19 |
603 |
+27 |
| Car finance (£m) |
1,765 |
+5 |
5,207 |
+10 |
24,812 |
+17 |
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 £99.5 billion of new finance to UK businesses and households. £74.1 billion of this was in the form of consumer credit representing over a third of all unsecured lending in the UK.
