8 February 2018
New figures released today by the Finance & Leasing Association (FLA) show that the number of second charge mortgage repossessions in 2017 was 105, 27% lower than in 2016. In the final quarter of 2017, the number of repossessions was 27, down by almost 31% compared with the same period in 2016.
The rate of second charge mortgage repossessions, as a percentage of average outstanding agreements, has fallen from 0.34% in 2009 to just 0.06% in 2017.
Commenting on the figures, Fiona Hoyle, Head of Consumer and Mortgage Finance at the FLA, said:
“Helping customers in financial difficulty to get back on track is a priority for the second charge mortgage market. This is reflected in the low number of repossessions reported in 2017.
“If customers think they may experience payment difficulties, they should contact their lender at an early stage to explore alternative options. The sooner contact is made, the easier it is to find a solution.”
Table 1: The number of actual properties taken into possession by FLA second charge mortgage providers1
Time period
Number of possessions
in the quarter
% change on the same quarter in the
previous year
Annual total
% change on the previous year
2008 Total
2009 Total
2010 Total
2011 Total
2012 Total
2013 Total
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
128
133
107
79
72
67
56
33
34
40
31
39
19
36
23
27
-43.4%
-27.3%
-25.7%
-35.8%
-43.8%
-49.6%
-47.7%
-58.2%
-52.8%
-40.3%
-44.6%
18.2%
-44.1%
-10.0%
-25.8%
-30.8%
1,612
1,467
864
827
6282
676
447
228
144
105
-9.0%
-41.1%
-4.3%
-24.1%2
7.6%2
-33.9%
-49.0%
-36.8%
-27.1%
Possession proceedings arising from FLA members’ second charge mortgage books, which have led to actual possession by the second mortgage provider.There were changes to the sample in Q1 2012 and Q1 2013 due to changes in FLA membership.Notes 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 2017, FLA members provided £128 billion of new finance to UK businesses and households. £96 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2017.For media enquiries, please contact the FLA press office on 020 7420 9656.
Author: FLA (Finance and Leasing Assoc) Official News
Asset finance market records seventh consecutive year of growth
9 February 2018
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 5% in 2017 – the seventh consecutive year of growth. New business in December 2017 increased by 4% compared with the same month in 2016.
The plant and machinery finance and commercial vehicle finance sectors reported new business up in 2017 by 12% and 1% respectively, compared with 2016, while new finance for business equipment was up by 7% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The asset finance industry reported a record level of new business of almost £32 billion in 2017, despite challenging economic conditions and subdued business investment growth.
“The latest figures also reveal that asset finance is a vital source of funding for SMEs when investing in business equipment and machinery. Of the total asset finance new business in 2017, £18.6 billion went to SMEs – 12% higher than in 2016.”
Dec 2017
% change on prev. year
3 months to Dec
2017
% change on prev. year
12 months to Dec
2017
% change on prev. year
Total FLA asset finance (£m)
2,632
+4
7,861
+5
31,769
+5
Total excluding high value (£m)
2,483
-1
7,695
+5
30,752
+6
Data Extracts:
By asset:
Plant and machinery finance (£m)
512
+1
1,515
+5
6,617
+12
Commercial vehicle finance (£m)
572
-14
1,934
-1
7,480
+1
IT equipment finance (£m)
293
+19
726
+14
2,285
+2
Business equipment finance (£m)
227
+6
624
+6
2,581
+7
Car finance (£m)
629
-2
2,243
+4
9,531
+5
Aircraft, ships and rolling stock finance (£m)
36
-41
60
-50
549
+20
By channel:
Direct finance (£m)
1,153
-7
3,746
0
15,477
+4
Broker-introduced finance (£m)
579
+24
1,620
+21
5,839
+14
Sales finance (£m)
752
-8
2,329
+4
9,436
+7
By product:
Finance leasing (£m)
403
+1
1,022
+5
3,809
+6
Operating leasing (£m)
511
-12
1,624
-4
6,755
0
Lease/Hire purchase (£m)
1,225
+1
4,162
+5
16,924
+8
Other finance (£m)
493
+45
1,053
+19
4,281
+5
Note to editors:
In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £32 billion of finance was provided to businesses and the public sector. FLA members financed more than a third of UK investment in machinery, equipment and purchased software in the UK in 2017.For media enquiries, please contact the FLA press office on 020 7420 9656.
Asset finance market reports further growth in May
6 July 2018
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 10% in May, compared with the same month in 2017.
New finance for plant and machinery grew in May by 4% compared with the same month in 2017, while the commercial vehicle finance sector reported new business up by 13% over the same period.
Geraldine Kilkelly, Head of Research and Chief Economist, said:
“The asset finance market continued to improve in May after a relatively quiet first quarter. The industry provided further support to the construction, manufacturing and agricultural sectors, with new finance for equipment in these sectors up by 6%, 11% and 22% respectively, compared with May 2017.”
May 2018
% change on prev. year
3 months to May
2018
% change on prev. year
12 months to May
2018
% change on prev. year
Total FLA asset finance (£m)
2,921
+10
8,984
+3
31,926
+3
Total excluding high value (£m)
2,637
+4
8,421
+3
30,127
+4
Data Extracts:
By asset:
Plant and machinery finance (£m)
586
+4
1,813
+1
6,651
+7
Commercial vehicle finance (£m)
684
+13
2,182
+6
7,561
+1
IT equipment finance (£m)
174
+1
506
-8
2,336
+5
Business equipment finance (£m)
201
-13
666
+5
2,588
+4
Car finance (£m)
870
+6
2,802
+0
9,445
+2
Aircraft, ships and rolling stock finance (£m)
15
-85
63
-81
204
-72
By channel:
Direct finance (£m)
1,334
+5
4,245
+3
15,038
+1
Broker-introduced finance (£m)
526
+2
1,630
+6
5,831
+7
Sales finance (£m)
777
+5
2,546
+1
9,257
+6
By product:
Finance leasing (£m)
312
+3
1,038
+4
3,886
+6
Operating leasing (£m)
472
-14
1,663
-16
6,335
-7
Lease/Hire purchase (£m)
1,667
+13
5,113
+9
17,273
+5
Other finance (£m)
302
+9
802
-9
3,142
-9
Note to editors:
In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £32 billion of finance was provided to businesses and the public sector. FLA members financed a third of UK investment in machinery, equipment and purchased software in the UK in 2017.For media enquiries, please contact the FLA press office on 020 7420 9656.
Consumer finance new business recovers in April after quiet March
8 June 2018
New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business in April grew by 22%, compared with the same month last year.
Credit card and personal loan new business together grew by 21% compared with April 2017, while retail store and online credit new business increased by 11%. Second charge mortgage new business increased 2% by value and 8% by volume over the same period.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The recovery in consumer finance new business in April follows a quiet end to the first quarter of 2018 and is consistent with recent improvements in consumer confidence and retail sales.
“Changes to Vehicle Excise Duty in April 2017 have affected the pattern of demand for consumer new car finance. In the first four months of 2018, the point of sale consumer car finance market overall reported new business volumes up by 4% compared with the same period in 2017.”
Table 1: New consumer credit lending
Apr 2018
% change on prev. year
3 months to Apr 2018
% change on prev. year
12 months to Apr 2018
% change on prev. year
Total FLA consumer finance (£m)
8,721
+22
26,294
+9
99,404
+8
Data extracts:
Retail store and online credit (£m)
718
+11
2,063
+8
9,209
+10
Credit cards & personal loans (£m)
4,391
+21
12,613
+12
49,777
+9
Second charge mortgages (£m)
83
+2
251
-2
1,025
+11
Car finance (£m)
3,174
+29
10,357
+7
35,244
+6
Note to editors:
VED changes came into effect on 1 April 2017FLA 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 2017, FLA members provided £128 billion of new finance to UK businesses and households. £96 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2017.For media enquiries, please contact the FLA press office on 020 7420 9656.
Second charge mortgage new business volumes up by 8% in April
8 June 2018
Commenting on the April 2018 new business figures for the second charge mortgage market, Fiona Hoyle, Head of Consumer and Mortgage Finance at the Finance & Leasing Association (FLA), said:
“The second charge mortgage market reported new business growth of 2% by value and 8% by volume in April, compared with the same period in 2017. In the three months to April 2018, the number of new second charge mortgages was 5,339, unchanged on the same period in 2017.
“This versatile product continues to prove popular with customers.”
Table 1: New second charge mortgage lending
Apr 2018
% change on prev. year
3 months to Apr 2018
% change on prev. year
12 months to Apr 2018
% change on prev. year
Value of new business (£m)
83
+2
251
-2
1,025
+11
Number of new agreements (No.)
1,771
+8
5,339
0
22,145
+9
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 2017, FLA members provided £128 billion of new finance to UK businesses and households. £96 billion of this was in the form of consumer credit, representing over a third of total new consumer credit written in the UK in 2017.For media enquiries, please contact the FLA press office on 020 7420 9656.
Consumer finance new business up by 11% in May
6 July 2018
New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business in May grew by 11%, compared with the same month last year.
Credit card and personal loan new business together grew by 11% in May, while retail store and online credit new business increased by 8%. Second charge mortgage new business fell 1% by value, but was up 2% by volume over the same period.
Geraldine Kilkelly, Head of Research and Chief Economist, said:
“Growth in consumer finance new business in May was in line with wider trends in the economy. Retail sales were boosted by events such as the Royal Wedding and hot weather, while the continued strength of the labour market and low interest rate environment meant consumer confidence remained relatively stable in the first half of 2018.”
Table 1: New consumer credit lending
May 2018
% change on prev. year
3 months to May 2018
% change on prev. year
12 months to May 2018
% change on prev. year
Total FLA consumer finance (£m)
9,100
+11
28,248
+10
100,395
+8
Data extracts:
Retail store and online credit (£m)
769
+8
2,206
+8
9,266
+10
Credit cards & personal loans (£m)
4,707
+11
13,454
+13
50,252
+9
Second charge mortgages (£m)
88
-1
258
-3
1,025
+9
Car finance (£m)
3,166
+13
11,236
+8
35,707
+7
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 2017, FLA members provided £128 billion of new finance to UK businesses and households. £96 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2017.For media enquiries, please contact the FLA press office on 020 7420 9656.
Modest growth in second charge mortgage volumes in May
6 July 2018
Commenting on the May 2018 new business figures for the second charge mortgage market, Fiona Hoyle, Head of Consumer and Mortgage Finance at the Finance & Leasing Association (FLA), said:
“The May figures are consistent with the stable performance reported by the market in 2018 so far and are also in line with the performance of the wider mortgage market which reported new business steady in the first five months of 2018.”
Table 1: New second charge mortgage lending
May 2018
% change on prev. year
3 months to May 2018
% change on prev. year
12 months to May 2018
% change on prev. year
Value of new business (£m)
88
-1
258
-3
1,025
+9
Number of new agreements (No.)
1,943
+2
5,547
-1
22,200
+8
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 2017, FLA members provided £128 billion of new finance to UK businesses and households. £96 billion of this was in the form of consumer credit, representing over a third of total new consumer credit written in the UK in 2017.For media enquiries, please contact the FLA press office on 020 7420 9656.
Second charge mortgage new business stable in Q1 2018
11 May 2018
New figures released today by the Finance & Leasing Association (FLA) show that second charge mortgage new business fell 10% by value and 13% by volume in March, compared with the same month in 2017. In Q1 2018 as a whole, new business increased 1% by volume compared with the same quarter in 2017.
Fiona Hoyle, Head of Consumer and Mortgage Finance at the FLA, said:
“March was a quieter month for the consumer credit markets in general. These latest figures show a stable picture for new business volumes in the first quarter overall.”
Table 1: New second charge mortgage lending
Mar 2018
% change on prev. year
3 months to Mar 2018
% change on prev. year
12 months to Mar 2018
% change on prev. year
Value of new business (£m)
86
-10
244
0
1,023
+15
Number of new agreements (No.)
1,826
-13
5,213
+1
22,007
+11
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 2017, FLA members provided £128 billion of new finance to UK businesses and households. £96 billion of this was in the form of consumer credit, representing over a third of total new consumer credit written in the UK in 2017.For media enquiries, please contact the FLA press office on 020 7420 9656.
Second charge mortgage repossessions fall by 26%
9 November 2017
New figures released today by the Finance & Leasing Association (FLA) show that the number of second charge mortgage repossessions in Q3 2017 was 23, 25.8% lower than in the same quarter in 2016.
The annual rate of second charge mortgage repossessions as a percentage of average outstanding agreements at the end of Q3 2017 was 0.06%, down from 0.07% at the same time in 2016.
Commenting on the figures, Fiona Hoyle, Head of Consumer and Mortgage Finance at the FLA, said:
“The fall in second charge mortgage repossessions in Q3 further demonstrates lenders’ commitment to helping customers in financial difficulty.
“The number of repossessions in 2017 as a whole is expected to be at a similar level, or slightly lower, than in 2016.”
Table 1: The number of actual properties taken into possession by FLA second charge mortgage providers1
Time period
Number of possessions in the quarter
% change on the same quarter in the previous year
Annual total
% change on the previous year
2008 Total
2009 Total
2010 Total
2011 Total
2012 Total
2013 Total
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
128
133
107
79
72
67
56
33
34
40
31
39
17
36
23
-43.4%
-27.3%
-25.7%
-35.8%
-43.8%
-49.6%
-47.7%
-58.2%
-52.8%
-40.3%
-44.6%
18.2%
-50.0%
-10.0%
-25.8%
1,612
1,467
864
827
6282
676
447
228
144
-9.0%
-41.1%
-4.3%
-24.1%2
7.6%2
-33.9%
-49.0%
-36.8%
Possession proceedings arising from FLA members’ second charge mortgage books, which have led to actual possession by the second mortgage provider.There were changes to the sample in Q1 2012 and Q1 2013 due to changes in FLA membership.Notes 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 2016, FLA members provided £118 billion of new finance to UK businesses and households. £88 billion of this was in the form of consumer credit, representing over a third of total new consumer credit written in the UK in 2016.
Continued growth in asset finance
6 October 2017
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 3% in August, compared with the same month last year.
The plant and machinery finance sector reported new business up in August by 4% compared with the same month in 2016, while new finance for business equipment was up by 8% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The asset finance industry has reported solid new business growth so far in 2017. Growth in asset finance provided to manufacturers has been particularly robust, with new business for production and processing plant up by more than 40% in the first eight months of 2017.”
Aug 2017
% change on prev. year
3 months to Aug
2017
% change on prev. year
12 months to Aug
2017
% change on prev. year
Total FLA asset finance (£m)
2,204
+3
7,957
+6
31,803
+6
Total excluding high value (£m)
2,163
+4
7,726
+10
30,643
+7
Data Extracts:
By asset:
Plant and machinery finance (£m)
502
+4
1,773
+21
6,546
+14
Commercial vehicle finance (£m)
513
-7
1,771
+1
7,479
+2
IT equipment finance (£m)
171
-3
595
+3
2,224
-2
Business equipment finance (£m)
187
+8
694
+10
2,567
+14
Car finance (£m)
613
+10
2,452
+9
9,842
+7
Aircraft, ships and rolling stock finance (£m)
7
-76
27
-82
611
+12
By channel:
Direct finance (£m)
1,108
+2
4,041
+9
15,571
+6
Broker-introduced finance (£m)
453
+7
1,385
+7
5,744
+16
Sales finance (£m)
602
+7
2,300
+12
9,327
+6
By product:
Finance leasing (£m)
272
0
989
+5
4,018
-2
Operating leasing (£m)
470
+4
1,687
+9
7,107
+8
Lease/Hire purchase (£m)
1,194
+3
4,201
+7
16,618
+9
Other finance (£m)
268
+4
1,080
0
4,059
+3
Note to editors:
In 2016, FLA members provided £118 billion of new finance to UK businesses and households. £30 billion of finance was provided to businesses and the public sector. FLA members financed more than a third of UK investment in machinery, equipment and purchased software in the UK in 2016.For media enquiries, please contact the FLA press office on 020 7420 9656.