9 February 2018
New figures released today by the Finance & Leasing Association (FLA) show growth of 6% in consumer finance new business in 2017. New business in December 2017 increased by 1% compared with the same month in 2016.
Credit card and personal loan new business together grew by 6% in 2017, while retail store and online credit new business increased by 9%. Second charge mortgage new business increased 14% by value and 10% by volume over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“Growth in retail store and online credit new business in the final quarter of 2017 was consistent with the seasonal pick-up in retail sales.
“The overall performance of the consumer finance market in 2017 was in line with expectations. We expect the market to continue to report modest single-digit growth in 2018 as a whole.”
Table 1: New consumer credit lending
|
Dec 2017 |
% change on prev. year |
3 months to Dec 2017 |
% change on prev. year |
12 months to Dec 2017 |
% change on prev. year |
|
|
Total FLA consumer finance (£m) |
7,605 |
+1 |
24,177 |
+6 |
96,299 |
+6 |
|
Data extracts: |
||||||
|
Retail store and online credit (£m) |
1,032 |
+13 |
2,935 |
+11 |
8,992 |
+9 |
|
Credit cards & personal loans (£m) |
4,188 |
+1 |
12,556 |
+5 |
47,911 |
+6 |
|
Second charge mortgages (£m) |
76 |
+3 |
245 |
+9 |
1,024 |
+14 |
|
Car finance (£m) |
2,074 |
-2 |
7,559 |
+5 |
34,220 |
+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 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.