Consumer credit borrowing from members of the Finance & Leasing Association (FLA) increased by 7% in the second quarter of 2012, compared with Q2 2011, according to latest figures from the trade body for the consumer credit industry.
Lending in the store instalment credit market remained strong, with growth of 25% compared with Q2 2011.
Second-charge mortgages, car finance, and credit card and personal loan spending also grew in Q2. The store card market showed a decrease in borrowing.
“June delivered the sixth consecutive month of growth in the total amount of consumer credit provided by FLA members,” said Fiona Hoyle, the FLA’s head of consumer finance.
“Growth in car finance and store instalment credit has been helped by the good deals currently on offer via retailers and car dealers. Consumers are taking advantage of these to spread payments into manageable monthly sums.”
Table 1: New consumer credit lending June 2012
June 12 |
% change on prev. year |
Q2 2012 |
% change on prev. year |
12 months to June 2012 |
% change on prev. year |
|
| Total FLA consumer finance (£m) |
4,391 |
+2 |
13,681 |
+7 |
53,739 |
+4 |
| Store cards (£m) |
118 |
-13 |
348 |
-16 |
1,617 |
-10 |
| Credit cards & personal loans (£m) |
2,589 |
-3 |
8,134 |
+1 |
32,902 |
+1 |
| Store instalment credit (£m) |
212 |
+16 |
685 |
+25 |
2,557 |
-1 |
| Second mortgages (£m) |
25 |
-4 |
77 |
+12 |
303 |
+7 |
| Car finance (£m) |
1,330 |
+13 |
4,037 |
+21 |
15,069 |
+14 |
