Steady growth in consumer finance

9 October 2015

Figures released today by the Finance & Leasing Association (FLA) show 6% growth in consumer finance new business in August, compared with the same month last year.

Point-of-sale consumer car finance grew by 12% compared with August 2014, while personal loan and credit card new business together grew by 4% in the same period.

The value of second charge mortgage new business grew by 31% in August compared with the same month in 2014, while the number of new second charge mortgages grew by 1% over the same period.

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

“Consumer finance new business provided by FLA members grew for the seventh consecutive month in August, reflecting the continued improvement in consumer confidence since the beginning of 2015.”

Table 1: New consumer credit lending

 

Aug 2015

% change on prev. year

3 months to Aug 2015

% change on prev. year

12 months to Aug 2015

% change on prev. year

Total FLA consumer finance (£m)

5,786

+6

19,197

+8

76,975

+6

 

           

Data extracts:

           

Retail store and online credit (£m)

448

-2

1,497

+2

6,462

+3

Credit cards & personal loans (£m)

3,216

+4

10,019

+5

39,315

+2

Second charge mortgages (£m)

64

+31

201

+33

701

+27

Car finance (£m)

1,692

+12

6,376

+15

26,783

+14

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.
  1. In 2014, FLA members provided £100 billion of new finance to UK businesses and households. £74 billion of this was in the form of consumer credit representing almost a third of total new consumer credit written in the UK last year.

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