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Second charge mortgage market growth continues in August

6 October 2017
Commenting on the August 2017 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 another strong month in August, with new business continuing to grow from a low base.
“A second charge mortgage provides a useful alternative where homeowners want to raise additional funds but do not want to change their existing first charge mortgage.”
Table 1: New second charge mortgage lending
Aug 2017
% change on prev. year
3 months to Aug 2017
% change on prev. year
12 months to Aug 2017
% change on prev. year
Value of new business (£m)
91
+25
274
+27
974
+10
Number of new agreements (No.)
1,905
+11
5,852
+18
20,910
+4
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 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.For media enquiries, please contact the FLA press office on 020 7420 9656.

Continued growth in consumer finance

8 September 2017
New figures released today by the Finance & Leasing Association (FLA) show growth of 13% in consumer finance new business in July, compared with the same month last year.
Credit card and personal loan new business together grew by 16% compared with July 2016, while retail store and online credit new business increased by 11%. Second charge mortgage new business was up 23% by value and 21% by volume over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“In the first seven months of 2017, consumer finance new business provided by FLA members was up by 6% compared with the same period last year. This is broadly in line with expectations for UK new consumer credit growth in 2017 as a whole.
Table 1: New consumer credit lending
July 2017
% change on prev. year
3 months to July 2017
% change on prev. year
12 months to July 2017
% change on prev. year
Total FLA consumer finance (£m)
7,607
+13
23,229
+9
91,297
+7
Data extracts:
Retail store and online credit (£m)
557
+11
1,645
+6
6,637
+2
Credit cards & personal loans (£m)
4,061
+16
12,162
+12
46,728
+8
Second charge mortgages (£m)
90
+23
270
+27
956
+8
Car finance (£m)
2,503
+10
8,012
+6
32,813
+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 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.For media enquiries, please contact the FLA press office on 020 7420 9656.

Second charge mortgage new business grows in July

8 September 2017
Commenting on the July 2017 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 its fifth consecutive month of growth in July, with new business up 23% by value and 21% by volume. In the first seven months of 2017, the number of new second charge mortgages grew by 13% to reach 12,378.
“It is important to remember that this growth is from a relatively low base. Nonetheless, the latest figures show that more customers are taking out a second charge mortgage – for example to fund renovations or help family members with a deposit for their first home.”
Table 1: New second charge mortgage lending
July 2017
% change on prev. year
3 months to July 2017
% change on prev. year
12 months to July 2017
% change on prev. year
Value of new business (£m)
90
+23
270
+27
956
+8
Number of new agreements (No.)
1,977
+21
5,798
+24
20,714
+4
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 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.For media enquiries, please contact the FLA press office on 020 7420 9656.

Consumer new car finance volumes down by 7% in July

8 September 2017
New figures released today by the Finance & Leasing Association (FLA) show that point of sale (POS) consumer new car finance business volumes fell by 7% in July, compared with the same month in 2016, while the value of new business was up by 3% over the same period.
The percentage of private new car sales financed by FLA members through the POS held steady at 86.0% in the twelve months to July.
The POS consumer used car finance market reported new business in July up 17% by value and 10% by volume, compared with the same month in 2016.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The fall in consumer new car finance business volumes is consistent with recent trends in private new car registrations, and FLA members’ penetration of this market remains stable.
“July saw modest new business growth in the consumer car finance market overall. While the recently announced scrappage schemes may provide some boost to private new car sales in the coming months, the industry expects POS consumer car finance new business volumes to be broadly stable in 2017 overall.”
Table 1: Cars bought on finance by consumers through dealerships
New business
July 2017
% change on prev. year
3 months to July 2017
% change on prev. year
12 months to July 2017
% change on prev. year
New cars
Value of advances (£m)
1,209
+3
4,109
+1
18,341
+5
Number of cars
64,127
-7
214,929
-9
1,006,136
-3
Used cars
Value of advances (£m)
1,294
+17
3,904
+14
14,473
+11
Number of cars
114,371
+10
343,646
+8
1,299,090
+7
Table 2: Cars bought on finance by businesses
New business
July 2017
% change on prev. year
3 months to July 2017
% change on prev. year
12 months to July 2017
% change on prev. year
New cars
Number of cars
47,900
-2
145,586
+7
512,814
0
Used cars
Number of cars
7,242
+60
15,231
+11
57,074
+36
Note to editors:
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, over a third of total new consumer credit written in the UK in 2016. £41 billion of it supported the purchase of new and used cars, including over 86% of private new car registrations.For media enquiries, please contact the FLA press office on 020 7420 9656.

BVRLA raises rental inspection requirements

The BVRLA Rental Committee has asked the association to broaden and tighten the operating standards that are reviewed as part of its inspection regime. The changes will take effect immediately. The move forms part of a wider initiative to help deliver more value to members and derive better customer outcomes. Other changes include the launch… Continue reading BVRLA raises rental inspection requirements

BVRLA Three-Year Plan unveils major investment

The BVRLA has published a Three-Year Plan which shows significant investment being made in the association’s infrastructure, research and internal and external expertise to ensure it can address the unprecedented range of challenges facing the sector. Having a better resourced trade association will enable the BVRLA to have stronger industry representation, be a louder voice… Continue reading BVRLA Three-Year Plan unveils major investment

BVRLA Position Papers summarise policy asks

The BVRLA has produced a set of Position Papers to provide an at-a-glance overview of the association’s view and desired intentions on a range of priority issues including Air Quality, Motor Finance, Taxation and Vehicle Terrorism. These one-page documents contain a brief summary of the issue and make clear what we are asking of policymakers… Continue reading BVRLA Position Papers summarise policy asks

BVRLA Honorary Life President, Freddie Aldous Obituary

Freddie Aldous was a pioneer and innovator in the vehicle rental industry in the UK. He had a long and illustrious career both in the vehicle rental and leasing sector and also in his tireless work for the British Vehicle Rental and Leasing Association (BVRLA) and for European Car and Truck Rental Association (ECATRA). His… Continue reading BVRLA Honorary Life President, Freddie Aldous Obituary

BVRLA’s HGV coalition writes to Minister on Clean Air Zones

The BVRLA has joined with the Road Haulage Association (RHA), Freight Transport Association (FTA), and the National Franchised Dealers Association (NFDA) in raising concerns about the way HGVs are treated in future Clean Air Zones (CAZ). The associations have written a joint letter to Transport Secretary Chris Grayling, calling for Government support in ensuring that… Continue reading BVRLA’s HGV coalition writes to Minister on Clean Air Zones

FLA launches Motor Finance Specialist apprenticeship

8 March 2018
The Finance & Leasing Association (FLA), working alongside employers in a Trailblazer group, has today launched its Motor Finance Specialist apprenticeship to offer employment and training opportunities to those entering one of the UK’s fastest growing sectors.
A new section on the FLA’s website provides all the necessary information that firms will need to get their apprenticeship programmes underway – including contact details for three well-established training providers who have already signed up to help employers develop tailor-made courses, along with advice on how to hire apprentices.
The launch of the apprenticeship is the culmination of 18 months of discussions between FLA members, brokers, dealerships and professional bodies, to devise a training programme that matches the specific skills and knowledge required in a market where 88% of private new car purchases are made using motor finance.
The one-to-two-year, Level 3 apprenticeship uses a core curriculum which then branches into options to suit either finance specialists, working for a lender, or retail specialists, who liaise directly with car buyers in the dealerships. The independent assessment process examines a number of areas, including knowledge of the finance products, regulatory compliance and customer service.
Commenting, Adrian Dally, Head of Motor Finance at the FLA, said:
“The Apprenticeship Standard will help to attract new talent who want to build their careers in motor finance. This kind of commitment to the industry is good for competition, customer service and the responsible provision of credit that is central to this market.
“FLA members have a history of investing in training for dealership staff, including development of the Specialist Automotive Finance (SAF) programme that has been running since 2007. We added the more demanding SAF Advanced qualification in 2016, and are now introducing modules to the original SAF programme to ensure there is a SAF training option for every career stage.”
Sue Husband, director, National Apprenticeship Service said:
“Through apprenticeships, we’re making it easier for employers to attract a diverse range of apprentices, helping them to acquire top talent and tackle skills shortages associated with an ageing workforce by training and upskilling. The Motor Finance Specialist Apprenticeship offers the opportunity to specialise in a key growth area of the automotive industry, with learning outcomes spanning the sale of motor finance products, financial regulation and compliance and customer service.
“With recent reforms to apprenticeships firmly focused on improving quality in the system and giving employers the skills they need, there has never been a better time to take on an apprentice.”
Note to editors:
More information on the Motor Finance Specialist Apprenticeship, and the groups we partnered with in its development, can be found here.Training providers 3aaa, Calibre Group Solutions and Simply Academy have signed up to deliver the apprenticeship.The FLA’s SAF initiative has been running since 2017, and was devised to boost professionalism in motor dealerships and increase consumer confidence in car finance.The SAF Advanced course (Certificate for Automotive Finance Specialists (CertAutoFS)) is available on the London Institute of Banking & Finance website. The Finance and Leasing Association is the leading industry body for the asset, consumer and motor finance sectors.In 2017, members provided £44 billion of new finance to help households and businesses purchase cars. Over 88% of all private new car registrations in the UK were financed by FLA members.For media queries, please contact the FLA press office on 020 7420 9656.