9 November 2017
New figures released today by the Finance & Leasing Association (FLA) show growth of 3% in consumer finance new business in September, compared with the same month last year. In Q3 2017, new business grew by 6% compared with the same quarter in 2016.
In September, credit card and personal loan new business together grew by 3% compared with the same month in 2016, while retail store and online credit new business increased by 6%. The value of second charge mortgage new business was similar to September 2016, while new business volumes fell by 2% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“September saw consumer finance new business grow at its slowest rate since April. With consumer confidence subdued, UK new consumer credit is expected to grow by 3.3% in 2017 as a whole, down from 6.3% in 2016.”
Table 1: New consumer credit lending
|
Sep 2017 |
% change on prev. year |
3 months to Sep 2017 |
% change on prev. year |
12 months to Sep 2017 |
% change on prev. year |
|
|
Total FLA consumer finance (£m) |
9,009 |
+3 |
23,771 |
+6 |
91,821 |
+6 |
|
Data extracts: |
||||||
|
Retail store and online credit (£m) |
565 |
+6 |
1,623 |
+8 |
6,702 |
+3 |
|
Credit cards & personal loans (£m) |
3,858 |
+3 |
11,957 |
+8 |
46,993 |
+6 |
|
Second charge mortgages (£m) |
77 |
0 |
259 |
+16 |
979 |
+10 |
|
Car finance (£m) |
4,146 |
+2 |
8,748 |
+5 |
33,021 |
+6 |
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.