Category: Trade Body Site

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.

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.

Consumer finance up 4% in August

6 October 2017
New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business in August grew by 4% compared with the same month last year.
Credit card and personal loan new business together grew by 4% compared with August 2016, while retail store and online credit new business increased by 7%. Second charge mortgage new business increased 25% by value and 11% by volume over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The modest growth in consumer finance new business overall in August reflects subdued consumer confidence about the general economic outlook.
“New business grew by 6% in the first eight months of this year, which is in line with single-digit growth expectations for UK new consumer credit in 2017 as a whole.”
Table 1: New consumer credit 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
Total FLA consumer finance (£m)
7,155
+4
22,470
+8
91,582
+6
Data extracts:
Retail store and online credit (£m)
501
+7
1,589
+7
6,668
+2
Credit cards & personal loans (£m)
4,038
+4
11,997
+10
46,872
+7
Second charge mortgages (£m)
91
+25
274
+27
974
+10
Car finance (£m)
2,101
+6
7,416
+7
32,924
+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 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 8%

6 October 2017
New figures released today by the Finance & Leasing Association (FLA) show that new business volumes in the point of sale (POS) consumer new car finance market fell by 8% in August, compared with the same month in 2016, while the value of new business was up by 2% 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 August.
The POS consumer used car finance market reported new business in August up 8% by value and 2% by volume, compared with the same month last year.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The August figures reported by the POS consumer new car finance market are in line with wider trends in private new car sales. These trends are not unexpected given the strength of the market in recent years and subdued consumer confidence about the general economic outlook.
“New business volumes in the POS consumer car finance market overall were stable in the first eight months of 2017 compared with the same period in 2016.”
Table 1: Cars bought on finance by consumers through dealerships
New business
Aug 2017
% change on prev. year
3 months to Aug 2017
% change on prev. year
12 months to Aug 2017
% change on prev. year
New cars
Value of advances (£m)
817
+2
3,561
+2
18,356
+4
Number of cars
45,728
-8
191,258
-7
1,002,368
-3
Used cars
Value of advances (£m)
1,284
+8
3,855
+12
14,568
+10
Number of cars
113,221
+2
339,625
+6
1,301,475
+5
Table 2: Cars bought on finance by businesses
New business
Aug 2017
% change on prev. year
3 months to Aug 2017
% change on prev. year
12 months to Aug 2017
% change on prev. year
New cars
Number of cars
30,146
+3
132,405
+5
513,616
0
Used cars
Number of cars
5,293
+51
17,534
+54
58,848
+35
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.2. For media enquiries, please contact the FLA press office on 020 7420 9656.

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.

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.

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.

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.

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