Demand continues for consumer credit

9 August 2013

New figures released today by the Finance & Leasing Association (FLA) show a 6% increase in new business consumer finance compared with June 2012. Areas of notable growth include second charge mortgages, up 52% during the same period, and point-of-sale car finance up 29%. Store instalment credit also increased by 12%.

Commenting, Fiona Hoyle, Head of Consumer Credit at the FLA, said: “Lenders in the second charge mortgage market will be affected by the transfer of consumer credit regulation to the Financial Conduct Authority in 2014 and will also be subject to the Mortgage Directive in 2015.

“With demand returning to this sector, it’s important that the Government’s implementation plan is managed smoothly to maintain the supply of this type of credit for consumers.”

Table 1: New consumer credit lending

  June 13 % change on prev. year 3 months to June 2013 % change on prev. year 12 months to June  2013 % change on prev. year
Total FLA consumer finance (£m) 4,646 +6 14,437 +6 56,151 +5
Data extracts:            
Store cards (£m) 104 -12 328 -6 1,407 -13
Credit cards & personal loans (£m) 2,429 -6 7,704 -5 31,493 -4
Store instalment credit (£m) 238 +12 753 +10 2,847 +11
Second charge mortgages (£m) 38 +52 116 +51 384 +27
Car finance (£m) 1,713 +29 5,154 +29 18,651 +24

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 short-term credit lenders, and instalment credit providers.
  2. In 2012 FLA members provided £76.6 billion of new finance to UK businesses and households. £55.1 billion of this was in the form of consumer credit representing about 30% of all unsecured lending in the UK.

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