New business growth in second charge loans
While the number of new contracts fell slightly, by 2% compared with the same month in 2013, the value of second charge mortgage lending increased by 38% over the 12 months to April.
The FLA’s figures also show that consumers are borrowing more, with new business increasing by 7% in April 2014 compared with the same month last year. Credit card finance and personal loans grew by 3% in the same period, as did retail store and online credit.
Commenting on the figures, Geraldine Kilkelly, head of research and chief economist at the FLA, said: “Growth rates in April across the main consumer finance sectors were more modest than in recent months.
“Nevertheless, FLA members’ share of the UK consumer credit market increased to 33.5% in the twelve months to April, up from 33.4% in March.
“April 2014 also saw a big change to the way in which consumer credit is regulated in the UK, with the introduction of the Financial Conduct Authority’s new supervisory regime.”