CONSUMER lending grew by eight per cent in September to £9.86bn, marking the strongest rate of growth since October 2018.
The data from the Finance & Leasing Association (FLA) reveals credit card and personal loan new business grew by eight per cent year-on-year, while retail store and online credit new business increased by five per cent.
Second charge mortgage new business soared by 18 per cent by value and 20 per cent by volume over the same period, with new business volumes reaching more than 27,000 – a 10-year high.
Meanwhile, new business in the point of sale (POS) consumer car finance market grew four per cent by volume and seven per cent by value in September. This was driven by the used car finance segment, which saw a 12 per cent increase in value and nine per cent increase in volume from a year ago.
“September saw consumer finance new business grow by its strongest rate since October 2018, with growth across each of the main finance products,” said Geraldine Kilkelly, head of research and chief economist at the FLA.
Asset finance new business (primarily leasing and hire purchase) grew by five per cent in September, with new finance for plant and machinery and business cars up by 15 per cent and four per cent respectively.
Kilkelly said the asset finance industry has seen its strongest growth in new finance for plant and machinery since January 2019 as businesses stockpiled ahead of another Brexit deadline.
“The industry has seen total new business grow in all but one month so far in 2019, with the latest annual new business total reaching a record level of £34.5bn,” she added.