New business volumes in the consumer finance sector grew by 3% to £9.9bn in November 2025 compared to the same month a year earlier, new figures released by the Finance & Leasing Association (FLA) have shown.

Through the 11 months of 2025 to the end of November, the FLA reported new business in the market was up 5% compared to the same period in 2024.

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 November, the credit card and personal loans sectors together reported new business 3% higher than in the same month in 2024, while the retail store and online credit sector reported a fall in new business of 3% over the same period.

“The consumer finance market overall continued to grow in November although at a slower pace than might have been expected in the run-up to Christmas,” director of research and chief economist at the FLA, Geraldine Kilkelly, said.

“The retail store and online credit sector recorded its highest monthly new business total of the year so far, but lower than in November 2024.

“The lower inflation and interest rate environment should help growth prospects, but weak consumer confidence has led to a more cautious industry outlook. The FLA’s latest research suggests that the proportion of consumer finance providers anticipating some increase in new business over the next year fell from 86% to 69% between Q3 and Q4 2025.”

The FLA’s latest figures for the second charge mortgage market revealed that new business volumes totalled £203m in November, a figure up 28% on the same month in 2024.

Director of consumer and mortgage finance and inclusion at the FLA, Fiona Hoyle, added: “The second charge mortgage market has reported growth in new business volumes in all but one month in 2025 so far and is ending the year growing as strongly as it began it.

“The proportion of new business volumes which were solely for the consolidation of existing loans fell in November compared with the previous month at 58.0%. A further 22.4% were for home improvements and loan consolidation, and 10.8% solely for home improvements.”

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