New business in consumer finance in April grew by 22 percent, compared with the same month last year, figures released by the Finance & Leasing Association (FLA) show.
Credit card and personal loan new business together grew by 21 percent compared with April 2017, while retail store and online credit new business increased by 11 percent. Second charge mortgage new business increased two percent by value and eight percent by volume over the same period.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The recovery in consumer finance new business in April follows a quiet end to the first quarter of 2018 and is consistent with recent improvements in consumer confidence and retail sales.
“Changes to vehicle excise duty in April 2017 have affected the pattern of demand for consumer new car finance. In the first four months of 2018, the point of sale consumer car finance market overall reported new business volumes up by four percent compared with the same period in 2017.”
New consumer credit lending
|Apr-18 (£m)||Percentage change on prev. year||Three months to Apr 2018 (£m)||Percentage change on prev. year||12 months to Apr 2018 (£m)||Percentage change on prev. year|
|Total FLA consumer finance||8,721||22||26,294||9||99,404||8|
|Retail store and online credit||718||11||2,063||8||9,209||10|
|Credit cards & personal loans||4,391||21||12,613||12||49,777||9|
|Second charge mortgages||83||2||251||-2||1,025||11|