Credit card and personal loan new business together grew by 10% compared with November 2015, while retail store and online credit new business increased by 3% over the same period. Second charge mortgage new business volumes fell in November by 6%, while growth in the value of second charge mortgage new business was flat.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“November saw new business growth across most of the main consumer finance products, as consumer confidence remained relatively robust in the build up to Christmas. In the eleven months to November 2016, overall new business grew by 10% compared with the same period in 2015.”
Harry Landy, Sales Director of Enterprise Finance, comments:
“After October’s fall it’s encouraging to see second charge lending rebound in November with a return to the steady post-Brexit recovery we’d seen previously. It’s encouraging to see lending equalling September’s £77M post-Brexit high, and with the market 7% larger than at the same time last year. The market is resilient but there is no doubt that the political shocks of 2016 impacted the property sector.
“In the coming months we can expect to see further economic jitters as Donald Trump takes office, and Theresa May triggers Article 50 to begin negotiations for the UK to leave the EU. However, the second charge market’s foundations are strong, and the FLA’s latest research suggests that new consumer credit in the UK will grow in 2017 by around 1%. The resilience of the sector shown in 2016 leaves me optimistic for the coming months, and in our view, the market is in good stead to navigate what is set to be another unpredictable year.”