Consumer finance new business increases by 10%

New figures released by the Finance & Leasing Association (FLA) show growth of 10% in consumer finance new business in October, compared with the same month last year.

Credit card and personal loan new business together grew by 10% compared with October 2017, while retail store and online credit new business increased by 15%. Second charge mortgage new business increased 19% by both value and volume over the same period. Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “The performance of the consumer finance market in October reflected further growth in the value of retail sales, and relatively stable consumer confidence up to that point which has been supported by a robust labour market and low-interest rate environment.

“The latest figures suggest solid single-digit new business growth in 2018 as a whole.”

Table 1: New consumer credit lending

Oct 2018	% change on prev. year	3 months to Oct 2018	% change on prev. year	12 months to Oct 2018	% change on prev. year
Total FLA consumer finance (£m)	8,959	+10	26,362	+6	103,458	+8
Data extracts:
Retail store and online credit (£m)	927	+15	2,448	+10	9,551	+10
Credit cards & personal loans (£m)	4,494	+10	12,939	+8	52,007	+9
Second charge mortgages (£m)	104	+19	285	+9	1,048	+3
Car finance (£m)	3,072	+9	9,575	+3	36,762	+7