Sector dogged by poor confidence
Share
Secured loan business fell 21% in January to £21m, down 19% com-pared with January 2010, figures from the Finance & Leasing Association show.
In the three months to January 2011 business was down 26% at £64m, compared with the same period last year.
On a yearly basis, business dropped 13% compared with 2009, equating to £289m in the 12 months to January 2011.
However, the figures show that unsecured loan business increased for the third consecutive month, with new business increasing 27% year on year to reach £209m in January 2011.
Fiona Hoyle, head of consumer finance at the FLA, says: “In the last 12 months our members provided over £50bn of consumer credit, but consumer confidence remains low.”
Along with growth in the unsecured loans market, other sectors that grew were credit cards and the car finance market, at 3% and 16% respectively compared with January 2010.
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
