There was a growth of 6% in consumer finance provided by Finance & Leasing Association (FLA) members in August.

Second charge mortgage new business grew 13% by value to £35 million and 7% by volume to 1,168.

Point-of-sale car finance saw continued growth, with new business increasing by a quarter to almost £1.4 billion compared with the same month in 2012. Growth in store instalment credit slowed in August, but new business was still 2% higher than in the same month a year earlier, at £203 million.

Fiona Hoyle, Head of Consumer Finance at the FLA, said: “Our latest figures illustrate the continued growth in point-of-sale finance and its importance for consumers.

“In light of the new regulatory proposals published by the Financial Conduct Authority last week, our main task will be to work with the regulator to ensure that the supply of responsibly-provided credit is maintained.”