New figures released 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

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