Consumer finance new business grows by 4%

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.”

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