Consumer finance new business grows by 19%

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 19% in March 2022 compared with the same month in 2021. In Q1 2022 overall, new business was 34% higher than in the same quarter in 2021. The credit card and personal loan sectors together reported…

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Consumer car finance new business volumes increase by 2%

17th May 2022 Consumer Lending | #car finance

New figures released by the Finance & Leasing Association (FLA) show that the consumer car finance market reported new business volumes up in March 2022 by 2% compared with the same month in 2021. The corresponding value of new business grew by 8% over the same period. In Q1 2022 as a whole, new business…

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Warning over cost of borrowing as overdraft rates surge to record highs

10th May 2022 Consumer Lending | #credit risk

Data covering quoted household interest rates on consumer credit products released by the Bank of England has revealed the rising cost of borrowing for UK households according to analysis by Freedom Finance. With the Bank hiking interest rates by 0.25% last Thursday and inflation expected to show a climb yet again for April, the data…

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Households will pay £858m more in interest after rate rise

Analysis of Bank of England data by Mazars shows UK households are currently paying £18.3 billion annually in interest payments on floating rate debt that are likely to be immediately impacted by an interest rate rise. Thi includes floating-rate mortgages, credit card debt and other unsecured personal lending. Consumers will be hit by further rises…

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Bank of England raises interest rate to 1% – Industry reaction

The Bank of England Monetary Policy Committee has raised rates to 1%, the highest in 13 years. The Bank also warned that the cost of living crisis could push the economy into recession this year. The Bank’s Monetary Policy Committee (MPC) voted to raise the base rate from 0.75% to 1%. Three of the nine-strong…

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Consumers add £800m to credit card debt in cost of living crunch

Latest figures from the Bank of England (BOE) have revealed that consumers borrowed an additional £1.3 billion in consumer credit in March, of which £800 million was new lending on credit cards, taking total credit card borrowing in the first three months of this year to £2 billion. The figures show credit card borrowing was…

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Klarna to start reporting customer debts to credit agencies

Buy now, pay later (BNPL) specialist, Klarna has announced that it will start reporting UK customer debts to credit agencies for the first time next month, in a move that could affect shoppers’ credit ratings from 2023. The move is understood to be the result of two years of talks with the credit reference companies…

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Two million mortgage borrowers face increase in payments of over £1,000 per year

New research by TotallyMoney has found that 2 million mortgage borrowers could face an average payment increase of over £1,000 per year. The research found that a 1% Bank of England (BoE) interest rate rise would increase mortgage payments by £99 per month or £1,188 per year for a 75% LTV mortgage on the average…

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Credit card debt set to increase by £9bn as people borrow to survive the cost of living crisis

The UK is set to borrow an additional £9bn on credit cards over the next six months to survive the cost of living crisis, according to a new report by subscription lender Creditspring. According to the most recent Bank of England figures, UK individuals are currently borrowing £1.5bn every month on credit cards. This borrowing…

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Sponsored Insta posts prompt consumers to borrow £652m on BNPL

Instagram influencers who were paid to endorse buy-now, pay-later (BNPL) fuelled more than £652 million in borrowing amongst followers trying to replicate their lifestyles according to research by Credit Karma. The company reviewed buy-now, pay-later sponsored posts by the UK’s biggest influencers finding that an individual would need to spend an average of £1.8K to…

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One in three adults struggle to access credit

29th April 2022 Consumer Lending | #credit access

Just over one in three UK adults may struggle to access credit from mainstream lenders, according to fresh data from PwC and TotallyMoney,  an increase of 50% in just six years. The research also found that nearly nine million more at risk of falling into this category – meaning half of the population in total,…

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Credit and BNPL demand grows

Consumer demand for credit products has grown since the onset of the pandemic, according to TransUnion’s Consumer Credit 2022 white paper, which reveals changing consumer preferences and affirms the growing demand for buy now, pay later (BNPL) finance.  The research reveals significant growth in the credit market when compared with pre-pandemic figures with more consumers…

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Reports highlights financial distress as BNPL increases by 64%

The use of Buy Now, Pay Later (BNPL) services has increased b 64%, according to research by Snoop. The company has released its latest UK Consumer Spending Snapshot, based on transactions from over 100,000 customers spanning April 2021 to March 2022, highlighting a striking picture of a nation in the grip of the worst cost-of-living…

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