New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew in February 2025 by 3% compared with the same month in 2024. In the first two months of 2025, new business in this market was 2% higher than in the same period in 2024.

The credit card and personal loans sectors together reported new business in February 2% higher than in the same month in 2024, while the retail store and online credit sector reported a fall in new business of 2% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:

“Consumer finance new business provided by FLA members continued to grow at a modest rate in February supported by strong performances in the new car finance and second charge mortgage markets.

“The US administration’s tariff hikes have weakened an already soft economic outlook. Uncertainty about jobs and higher inflation in the coming months are likely to weigh further on consumer confidence and spending. Our latest research suggests that total UK new consumer credit by value will grow by 6% in 2025, with the credit card finance market increasing by 5%.
  
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”