Further growth in consumer finance in July

5 September 2014

New figures released today by the Finance & Leasing Association (FLA) show 7% growth in consumer finance new business, bringing FLA members’ share of the UK consumer credit market to 33.8% in the twelve months to July 2014.

Retail store and online credit grew by 7% in July, while new business in the second charge mortgage market increased by 27% and passed the £50 million mark for the first time since 2008.

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

“The July figures show the continuing importance of consumer credit, and specifically point-of-sale credit, in helping consumers make essential household purchases. Our latest research suggests that new consumer credit in the UK will grow by about 8% this year.”

 FLA consumer finance new business

 

Jul 14

% change on prev. year

3 months to Jul 2014

% change on prev. year

12 months to Jul  2014

% change on prev. year

Total FLA consumer finance (£m)

6,076

+7

18,195

+10

71,131

+11

 

           

Data extracts:

           

Retail store and online credit (£m)

490

+7

1,517

+7

6,224

+8

Credit cards & personal loans (£m)

3,225

+1

9,529

+5

37,455

+5

Second mortgages (£m)

52

+27

144

+21

522

+32

Car finance (£m)

1,937

+16

6,011

+18

23,408

+23

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.
  2. In 2013 FLA members provided £89.0 billion of new finance to UK businesses and households. £66.6 billion of this was in the form of consumer credit representing almost a third of all unsecured lending in the UK.
  3. Reference to FLA-sponsored research – Oxford Economics of UK consumer lending forecasts, published in August 2014. Available to FLA members in the research section of the FLA website.

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