Consumer finance new business up by nine percent in July

Credit card and personal loan new business together grew by 11 percent compared with July 2017, while retail store and online credit new business increased by four percent. Second charge mortgage new business was up six percent by value and five percent by volume over the same period.

Away from consumer finance, FLA figures on car finance show new business volumes grew six percent in July, compared with the same month in 2017, while the value of new business increased by 11 percent over the same period.

The point of sale consumer new car finance market reported new business in July up five percent by volume and 10 percent by value, compared with the same month in 2017. The percentage of private new car sales financed by FLA members through the point of sale was 89.8 percent in the twelve months to July.

The POS consumer used car finance market reported new business in July up six percent by volume and 13 percent by value, compared with the same month in 2017.

Commenting on the figures, Geraldine Kilkelly, head of research and chief economist at the FLA, said: “Growth in consumer finance new business in July reflected the strength of retail sales over that period. Our latest research suggests that new consumer credit in the UK is likely to grow by around five percent in 2018 as a whole, in line with the annual rate of growth in 2017.

“The point of sale consumer car finance market reported new business volumes up by four percent in the first seven months of 2018, in line with expectations of modest single-digit growth in 2018 as a whole.”