New business conducted across the consumer finance space grew by 28% in June compared to the same month in 2020, to total £8.12bn.

Figures published by the Finance and Leasing Association (FLA) revealed that across the first half of 2021, new business was also 18% higher than it was for the same period last year.

The retail store and online credit sector reported new business up by 22% in June compared with same month last year, as well as growth of 12% in the first half of 2021. The credit card and personal loan sectors together reported new business up by 39% in June compared with the same month in 2020, and growth of 4% in the first half of this year.

FLA members in the consumer finance sector include banks, credit card providers, store card providers, second charge mortgage lenders, motor finance providers, personal loan and instalment credit providers.

Commenting on the figures, FLA director of research and chief economist, Geraldine Kilkelly, said: “The consumer finance market continued to report robust growth in June, but as expected growth rates are beginning to moderate. The H1 2021 results show that new business levels have recovered strongly as restrictions to deal with the pandemic have been gradually eased.

“Our latest research suggests that the industry has maintained its optimism about the opportunities for growth despite the risks to the economic recovery from further waves of Covid-19. The FLA’s Q3 2021 industry outlook survey shows that 88% of consumer finance providers expected new business growth over the next twelve months.”

In the second charge mortgage market, the FLA’s data revealed that there was £91m worth of new business in June, a figure that was up by 236% on June last year. The was made up of 1,960 new agreements for the month, which also represented a jump of 195% on the total recorded across the market in June 2020.

FLA director of consumer and mortgage finance, Fiona Hoyle, said: “The second charge mortgage market continued its recovery in June as new business grew for a third consecutive month. In H1 2021, new business volumes increased by 21% compared with the same period in 2020, and we expect further growth during the second half of this year.”

Share Story: