Consumer finance grows by 11%

New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew in June 2025 by 11% compared with the same month in 2024.  In the first half of 2025, new business in this market was 5% higher than in the same period in 2024.

The credit card and personal loans sectors together reported new business in June 13% higher than in the same month in 2024, while the retail store and online credit sector reported that new business held steady over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “June saw FLA consumer finance providers report double-digit new business growth for only the second time this year supported by a pick-up across most of the main finance products. This in part reflected stronger retail sales volumes in June 2025.

“We expect further cuts in Bank Rate this year which should ease the pressure on household disposable incomes and lift consumer confidence. Our latest research suggested that UK new consumer credit would grow by 6% in 2025, with credit card finance new business also up by 6% this year.”

New consumer credit lending

	Jun 2025	% change on prev. year	3 months to Jun2025	% change on prev. year	12 months to Jun 2025	% change on prev. year
Total FLA consumer finance (£m)	10,225	11	30,039	4	118,926	4
Data extracts:
Retail store and online credit (£m)	740	0	2,145	-4	9,290	-2
Credit cards & personal loans (£m)	5,324	13	16,094	5	62,479	5
Second charge mortgages (£m)	177	22	485	14	1,875	25
Car finance (£m)	3,488	9	9,856	3	40,006	4