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.