Consumer finance new business grows by 4%

Written by Oliver Wade

Consumer finance new business grew by 4% in December 2018, increasing to £7.9bn, when compared to the same month in 2017, and by 5% in the fourth quarter of 2018 as a whole, new research has found.

Figures published today by the Finance & Leasing Association (FLA) revealed that credit card and personal loan new business together increased by 5% in December to £4.38bn.

The second charge mortgage market also experienced growth, with the data from December highlighting a 6% increase in value on December 2017’s figure, and a 13% increase in volume.

However, despite the growth elsewhere, retail store and online credit new business held steady at just over £1bn.

Commenting on the research, FLA chief economist Geraldine Kilkelly said: “The consumer finance market slowed in the final quarter of 2018 as continued uncertainty about the economic outlook hit consumer confidence.

“2019 is likely to see modest single-digit growth in new consumer credit overall.”

In relation to the second charge mortgage statistics, FLA head of consumer and mortgage finance Fiona Hoyle added: "December saw the market report its sixth consecutive month of growth, contributing to solid single-digit new business growth in 2018 as a whole.

“The second charge mortgage market is expected to see further single-digit new business growth in 2019 overall.”

    Share Story:

Specialist FTB and BTL markets
Adam Cadle talks to Vida Homeloans director of sales - mortgages Louisa Sedgwick about the specialist first time buyer and buy to let markets


Subscribe to our newsletter to receive breaking news by email.


MoneyAge welcome
MoneyAge Editor Adam Cadle discusses the brand and what is on offer

World Markets (15 minute+ time delay)