Continued growth in consumer finance in 2016

10 February 2017

New figures released today by the Finance & Leasing Association (FLA) show growth of 9% in consumer finance new business in 2016. New business in December grew by 2% compared with the same month in 2015.

Credit card and personal loan new business together grew by 8% in 2016, while retail store and online credit new business was up by 2% over the same period. Second charge mortgage new business grew 4% by value, while volumes fell by 6%.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:

“The growth in new business across all of the main consumer finance products in 2016 reflected growth in household expenditure, the key driver of the UK economy last year.

“Despite significant challenges faced by the second charge mortgage market in 2016 as it adjusted to the Financial Conduct Authority’s MCOB regime, new business volumes were only modestly lower than in 2015.”

Table 1: New consumer credit lending


Dec 2016

% change on prev. year

3 months to Dec 2016

% change on prev. year

12 months to Dec 2016

% change on prev. year

Total FLA consumer finance (£m)









Data extracts:


Retail store and online credit (£m)







Credit cards & personal loans (£m)







Second charge mortgages (£m)







Car finance (£m)







Note to editors:

  1. 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.
  1. 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.

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