New business agreed in the consumer finance market increased by 4% in July compared with the same month last year, new figures published by the Finance & Leasing Association (FLA) have shown.
Over £10.33bn in new business was agreed in consumer credit lending during the month.
In the seven months to July, new business in this market was 5% higher than in the same period in 2024, the FLA also confirmed.
Members of the FLA from across the consumer finance sector include banks, credit card providers, store card providers, second charge mortgage lenders, personal loan and instalment credit providers, as well as motor finance providers.
The credit card and personal loans sectors together reported new business in July 2% higher than in the same month in 2024, hitting £5.5bn, while the retail store and online credit sector reported that new business fell by 6% over the same period, dropping to £677m.
Director of research and chief economist at the FLA, Geraldine Kilkelly, said: “The consumer finance market represented by FLA members reported an eighth consecutive month of growth in July as new lending increased across most of the main finance products.
“Consumer confidence has shown signs of improving following a further cut in interest rates by the Bank of England. Our latest research suggests that UK new consumer credit will grow by 7% in 2025 as a whole, with credit card finance new business up by 8% compared with 2024.”
The second charge mortgage sector saw lending reach £201m in July, which the FLA reported was a 23% jump on the same month last year
Director of consumer and mortgage finance and inclusion at the FLA, Fiona Hoyle, noted that by value, this was its highest level since June 2008.
“In the seven months to July 2025, new business volumes were 13% higher than in the same period in 2024,” she added.
“The proportion of new business volumes which were totally or in part for the consolidation of existing loans remained stable at 81% in the seven months to July 2025, similar to the same period in 2024.”
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