New figures released today by the Finance & Leasing
Association (FLA) show that consumer finance new business grew in
June 2025 by 11% compared with the same month in 2024. In
the first half of 2025, new business in this market was 5% higher
than in the same period in 2024.
The credit card and personal loans sectors together reported new
business in June 13% higher than in the same month in 2024, while
the retail store and online credit sector reported that new
business held steady over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of
Research and Chief Economist at the FLA, said:
“June saw FLA consumer finance providers report double-digit new
business growth for only the second time this year supported by a
pick-up across most of the main finance products. This in part
reflected stronger retail sales volumes in June 2025.
“We expect further cuts in Bank Rate this year which should ease
the pressure on household disposable incomes and lift consumer
confidence. Our latest research suggested that UK new consumer
credit would grow by 6% in 2025, with credit card finance new
business also up by 6% this year.
“As always, customers who are worried about meeting payments
should speak to their lender as soon as possible to find a
solution.”
Table 1: New consumer credit lending
|
|
Jun 2025
|
% change on prev. year
|
3 months to
Jun2025
|
% change on prev. year
|
12 months to Jun 2025
|
% change on prev. year
|
|
Total FLA consumer finance (£m)
|
10,225
|
11
|
30,039
|
4
|
118,926
|
4
|
|
Data extracts:
|
|
|
|
|
|
|
|
Retail store and online credit (£m)
|
740
|
0
|
2,145
|
-4
|
9,290
|
-2
|
|
Credit cards & personal loans (£m)
|
5,324
|
13
|
16,094
|
5
|
62,479
|
5
|
|
Second charge mortgages (£m)
|
177
|
22
|
485
|
14
|
1,875
|
25
|
|
Car finance (£m)
|
3,488
|
9
|
9,856
|
3
|
40,006
|
4
|
|
Note to editors:
- FLA members in the consumer finance sector
include banks, credit card providers, store card
providers, second-charge mortgage lenders, motor
finance providers, personal loan and instalment
credit providers.
- In 2024, FLA members provided £156 billion of
new finance to UK businesses and households. £116
billion of this was in the form of consumer
credit representing almost a third of total new
consumer credit written in the UK in 2024.
- Consumer car finance reported in these
figures refers to finance obtained through the
point of sale.
|
|
