8 July 2016
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
May 2016 |
% change on prev. year |
3 months to May 2016 |
% change on prev. year |
12 months to May 2016 |
% change on prev. year |
|
Total FLA consumer finance (£m) |
7,317 |
+14 |
23,579 |
+11 |
85,023 |
+11 |
|
||||||
Data extracts: |
||||||
Retail store and online credit (£m) |
553 |
+10 |
1,611 |
+5 |
6,662 |
+4 |
Credit cards & personal loans (£m) |
3,781 |
+13 |
11,103 |
+9 |
43,269 |
+8 |
Second charge mortgages (£m) |
69 |
+10 |
206 |
+3 |
892 |
+27 |
Car finance (£m) |
2,574 |
+17 |
9,597 |
+15 |
30,259 |
+16 |
Note to editors:
- The FLA’s response to the recent EU referendum can be found in this press release.
- 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 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.