Credit, Collections & Insolvency News
New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business fell by 2% in April, compared with the same month last year. Credit card and personal loan new business together grew by 3% compared with April 2016, while retail store and online credit new business fell by 4%. Second charge mortgage new business was up 53% by value and 36% by volume over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “In the first four months of 2017, FLA consumer finance new business increased by 4%. The latest research from Oxford Economics, on behalf of the FLA, suggests that total UK new consumer credit is likely to grow by 2.1% in 2017 overall.
“The strong growth in second charge mortgage new business in part reflects lower than usual new business volumes in April 2016, which was the first month following the transfer of the regulation of this market to the Financial Conduct Authority’s mortgage regime.”
Table 1: New consumer credit lending
|
Apr 2017 |
% change on prev. year |
3 months to Apr2017 |
% change on prev. year |
12 months to Apr2017 |
% change on prev. year |
|
| Total FLA consumer finance (£m) |
6,893 |
-2 |
23,313 |
+3 |
89,289 |
+6 |
| Data extracts: | ||||||
| Retail store and online credit (£m) |
499 |
-4 |
1,494 |
-1 |
6,550 |
+1 |
| Credit cards & personal loans (£m) |
3,605 |
+3 |
11,156 |
+2 |
45,390 |
+6 |
| Second charge mortgages (£m) |
79 |
+53 |
248 |
+13 |
899 |
+2 |
| Car finance (£m) |
2,378 |
-9 |
9,414 |
+5 |
32,326 |
+8 |
