Consumer finance new business falls 6%, latest FLA figures show

New business conducted in the consumer finance sector fell by 6% in November compared to the same month in 2021, according to the latest figures published by the Finance & Leasing Association (FLA).

In the 11 months of 2022 up to November, however, the FLA data revealed that new business was 15% higher than in the same period the year before.

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 show that the credit card and personal loan sectors together reported a fall in new business of 9% in November, compared with the same month in 2021. The retail store and online credit sector reported new business growth of 3% over the same period.

In total, the value of new business in the consumer finance space reported by the FLA hit £9.28bn for November.

“November saw the consumer finance market represented by FLA members report a fall in new business for the first time since February 2021,” director of research and chief economist at the FLA, Geraldine Kilkelly. “The performance across finance products was mixed, reporting either slower new business growth or lower levels of new business compared with November 2021.

“Nevertheless, consumer finance new business provided by FLA members is on track to be 10% higher in 2022 than its pre-pandemic level in 2019, and the value of consumer finance outstanding agreements at the end of 2022 is expected to be 1% higher than at the end of 2019.”

The FLA’s figures for the second charge mortgage market showed that news business hit £130m in November, representing a 14% rise on the same month in 2021.

Commenting on the second charge mortgage market data, FLA director of consumer and mortgage finance and inclusion, Fiona Hoyle, added: “The second charge mortgage market reported further growth in new business in November but at a slower rate than we have seen for much of 2022 when the market was recovering from the pandemic.

“The distribution by purpose of loan in November showed 59% of new agreements were for the consolidation of existing loans, 13% for home improvements, and a further 23% 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.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.