Credit card and personal loan new business together fell in January by 3%, when compared to the same month in 2018, while retail store and online credit new business fell by 1%, figures published by the Finance and Leasing Association (FLA) revealed.

However, second charge mortgage new business increased 12% in value and 18% by volume over the same period. In January 2019, the value of new second charge mortgage business was £85m, with just under 2,000 new deals being written.

As a result of this increase, overall consumer finance new business in January was at a similar level to the same month in 2018.

Commenting on the figures, FLA head of research and chief economist Geraldine Kilkelly said: “The consumer finance market has seen new business growth slow in recent months, reflecting consumer concerns about the economic outlook.

“Our latest research suggests that UK new consumer credit is likely to grow by 3.0% in 2019 as a whole, down from 5.8% in 2018.”

Commenting specifically on the second charge mortgage new business figures, FLA head of consumer and mortgage finance Fiona Hoyle added: “The second charge mortgage market made an impressive start to 2019, with new business up 12% by value and 18% by volume in January, compared with the same month in 2018.

“This is a strong performance, and as most of the market is broker-introduced, it also suggests that knowledge of second charge mortgages among brokers is growing.”

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