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:
- 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 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.