New business volumes in the consumer finance market grew by 5% in February compared with the same month last year, totalling £9.16bn, figures published by the Finance & Leasing Association (FLA) have shown.

In the first two months of 2026, new consumer finance business agreed by FLA members was 4% higher compared to the same period in 2025.

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.

In February, the credit card and personal loans sectors together reported new business 4% higher in February than in the same month in 2025, while the retail store and online credit sector reported a fall in new business of 2% over the same period.

Director of research and chief economist at the FLA, Geraldine Kilkelly, commented: “The consumer finance market recorded steady growth in February, with most major product areas seeing year on year increases in the value of new business. This indicates a degree of resilience in consumer demand, despite continued pressure on household finances.

“The UK economy now faces a more challenging outlook, as the conflict in the Middle East is likely to weigh on activity, confidence and financial conditions.”

In the second charge mortgage sector, the FLA’s figures showed that new agreed business was up by 25% in February compared to the same month in 2025, totalling £214m.

Kilkelly described the second charge mortgage market’s growth as “robust”, with new business by value reaching its highest February level since 2008.

“By providing a secured alternative to higher cost unsecured borrowing, second charge mortgages are proving popular with households as they help to manage affordability pressures while maintaining financial stability,” Kilkelly added.

“The second charge mortgage market will continue to play an important role in supporting household budgeting, while affordability considerations and wider uncertainty shape the pace of growth in the months ahead.”

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