10 October 2013
New figures released today by the Finance & Leasing Association (FLA) show growth of 6% in consumer finance provided by FLA members in August. Point-of-sale car finance saw continued growth, with new business increasing by a quarter to almost £1.4 billion compared with the same month in 2012. Growth in store instalment credit slowed in August, but new business was still 2% higher than in the same month a year earlier, at £203 million. Second charge mortgage new business grew 13% by value to £35 million and 7% by volume to 1,168.
Commenting, Fiona Hoyle, Head of Consumer Finance at the FLA said: “Our latest figures illustrate the continued growth in point-of-sale finance and its importance for consumers. “In light of the new regulatory proposals published by the Financial Conduct Authority last week, our main task will be to work with the regulator to ensure that the supply of responsibly-provided credit is maintained.”
Table 1: New consumer credit lending
|Aug 13||% change on prev. year||3 months to Aug 2013||% change on prev. year||12 months to Aug 2013||% change on prev. year|
|Total FLA consumer finance (£m)||4,847||+6||15,096||+6||60,205||+4|
|Store cards (£m)||100||-5||311||-8||1,393||-11|
|Credit cards & personal loans (£m)||3,034||0||8,868||-2||34,896||-5|
|Store instalment credit (£m)||203||+2||701||+7||2,867||+8|
|Second mortgages (£m)||35||+13||114||+31||398||+27|
|Car finance (£m)||1,361||+25||4,732||+27||19,276||+25|
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 short-term credit lenders, and instalment credit providers.
- In 2012 FLA members provided £80.2 billion of new finance to UK businesses and households. £58.8 billion of this was in the form of consumer credit representing about 30% of all unsecured lending in the UK.