Point-of-sale finance drives growth in consumer finance market during 2013

7 February 2014

Figures released today by the Finance & Leasing Association (FLA) show that in 2013, consumer finance new business grew by 6% compared with 2012 to £62.3 billion. The growth was partly driven by a strong performance in the second charge mortgage and point-of-sale markets, with increases of 37% and 19% respectively. In December 2013, FLA consumer finance providers reported new business growth of 11% compared with the same month in the previous year.

The second charge mortgage market reported its strongest monthly rate of growth for more than five years, with new business up 61% by value (to £37 million) and 40% by volume (to 1,128 new agreements).

Commenting, Fiona Hoyle, Head of Consumer Finance at the FLA said: “These figures show that responsibly-provided credit from our members continues to play an important part in the economic recovery. “However, with only two months to go, the timeframe for the transfer of consumer credit regulation to the Financial Conduct Authority remains extremely challenging, and the finalised Rule Book has yet to be published. “The FCA will need to work closely with the industry to ensure a smooth transition so as to maintain the supply of credit for consumers.”

 

Dec. 13

% change on prev. year

3 months to Dec. 2013

% change on prev. year

12 months to Dec.  2013

% change on prev. year

Total FLA consumer finance (£m)

5,418

+11

16,147

+7

62,272

+6

             
Data extracts:            
Store cards (£m)

178

-2

456

-4

1,370

-7

Credit cards & personal loans (£m)

3,391

+5

9,658

+2

35,514

-3

Store instalment credit (£m)

251

+10

703

+9

2,433

+7

Second mortgages (£m)

37

+61

123

+45

445

+37

Car finance (£m)

1,448

+31

4,818

+21

20,785

+24

Table 1: New consumer credit lending

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 short-term credit lenders, and instalment credit providers.
  2. In 2013 FLA members provided £84.7 billion of new finance to UK businesses and households. £62.3 billion of this was in the form of consumer credit representing more than 30% of all unsecured lending in the UK.

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