October saw a 5% increase in consumer finance new business compared with the same month in 2012, new figures released today by the Finance & Leasing Association (FLA) show.

The second charge mortgage market reported its highest level of new agreements in almost four years, up by 25% to 1,391, while the value of new business grew in October by 42%. Over the same period, the average advance increased by 14% to £31,632.

Fiona Hoyle, head of consumer finance at the FLA, said: “Today’s figures show a continued demand for responsibly-provided credit and maintaining the supply of credit has got to be a priority for the Financial Conduct Authority (FCA) as it finalises its new regulatory regime.

“The FLA has called for a sensible and proportionate approach – one which recognises the extremely short timeframe that firms have to implement wide-ranging changes.

“With only four months to go before the new regime is introduced, and the final rulebook not due for publication until the end of February, sensible transitional arrangements are going to be essential.”