Double-digit growth in consumer finance

New figures released today by the Finance & Leasing Association (FLA) show growth of 14% in consumer finance new business in May, compared with the same month last year.

Credit card and personal loan new business together grew by 13% compared with May 2015, while retail store and online credit increased by 10% over the same period – its strongest growth for over a year.

The second charge mortgage market reported new business up 10% by value in May compared with the same month last year, while the number of new mortgages fell by 9% over the same period.

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

“May saw double-digit growth in new business across the main consumer finance products. The recent falls in second charge mortgage new business volumes follow a significant period of change in this market as it prepared to move to the Financial Conduct Authority’s mortgage regime.”

Table 1: New consumer credit lending

Note to editors:

1. The FLA’s response to the recent EU referendum can be found in this press release.
2. 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.
3. In 2015, FLA members provided £110 billion of new finance to UK businesses and households. £81 billion of this was in the form of consumer credit representing almost a third of total new consumer credit written in the UK in 2015.