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.