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:
- 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 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.
- 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.