Second charge new business down 6% in February

Second charge new business fell by 6 per cent in value in the year to February 2016, according to the latest figures from the Finance and Leasing Association.

The volume of business also dropped over the same period, down 12 per cent.

The data follows a similar drop in January, when second charge business fell 6 per cent on an annual basis and 11 per cent in volume.

Overall, the FLA found that consumer finance new business had fallen 3 per cent in February, compared to the same month last year.

Credit card and personal loan new business together fell by 4 per cent compared with February 2016, while retail store and online credit new business was down by 5 per cent.

FLA head of research and chief economist Geraldine Kilkelly says: “The [overall] fall in new business in February was the first monthly contraction since January 2015.

“The latest research by Oxford Economics, on behalf of the FLA, suggests that total UK new consumer credit is expected to grow at a more modest rate in 2017 as a whole than in recent years.”