The volume of new business agreed in the consumer finance space increased by 14% in August, compared with the same month in 2021.
Latest figures published by the Finance & Leasing Association (FLA) confirmed that in the first eight months of 2022, new business was 21% higher than in the same period last year.
FLA members in 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 latest figures have revealed that the credit card and personal loan sectors together reported new business up by 15% in August compared with the same month in 2021, while the retail store and online credit sector reported new business growth of 7% over the same period.
Director of research and chief economist at the FLA, Geraldine Kilkelly, commented: “The recovery in the consumer finance market continued in August, with growth reported across each of the main finance products. Annual consumer finance new business provided by FLA members was 7% higher than in February 2020, while the value outstanding contracts was at similar level to pre-pandemic.
“During the coming months when many consumers may be facing increased pressures on their household incomes, the consumer finance industry remains committed to meeting demand and providing targeted support to customers who may need it.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”
For the second charge mortgage space, the FLA also reported that the market experienced £153m worth of new business in August, a 61% increase on the same month in 2021.
Commenting on these figures, FLA director of consumer and mortgage finance and inclusion, Fiona Hoyle, added: “The second charge mortgage market reported another strong performance in August, with annual new business volumes 5% higher than pre-pandemic.
“The distribution by purpose remained in line with recent months: 54% of new agreements were for the consolidation of existing loans, 15% for home improvements, and a further 25% for both loan consolidation and home improvements.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
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