Consumer finance grew by 6% last year

Latest figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 10% in December 2025 compared with the same month in 2024. In 2025 as a whole, new business in this market was 6% higher than in 2024.

The credit card and personal loans sectors together reported new business 9% higher in December than in the same month in 2024, while the retail store and online credit sector reported a 2% fall in new business over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The consumer finance market reported a strong end to 2025 with growth across most of the main finance products in December. For FLA members, new lending of over £122 billion was a record year.

“With inflation and interest rates on a downward path this should support further growth in 2026 as FLA members continue to support households make essential purchases.”

New consumer credit lending

	Dec 2025	% change on prev. year	3 months to Dec 2025	% change on prev. year	12 months to Dec 2025	% change on prev. year
Total FLA consumer finance (£m)	10,388	10	30,672	7	122,465	6
Data extracts:
Retail store and online credit (£m)	1,040	-2	2,932	-3	9,095	-4
Credit cards & personal loans (£m)	5,930	9	16,460	6	64,143	5
Second charge mortgages (£m)	182	41	608	33	2,142	24
Car finance (£m)	2,817	15	9,212	7	41,119	6