Consumer finance new business grew by 13% in March 2025 compared with the same month in 2024, according to new figures released by the Finance & Leasing Association (FLA).
The data showed that total new business reached almost £12bn during the month, with growth reported across most sectors.
Second charge mortgages showed particularly strong performance, with new business in March up 23% compared to the same month last year at £168m.
The sector has demonstrated consistent growth, with Q1 2025 volumes up 24% on Q1 2024, and a 27% increase in the 12 months to March 2025, reaching £1.815bn overall.
Credit cards and personal loans also performed strongly, with new business in March 10% higher than in the same month in 2024, reaching £5.421bn.
Meanwhile, the retail store and online credit sector reported a slight fall in new business of 1% over the same period, dropping to £694m.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “FLA members reported broad-based growth in March with new business reaching a record monthly total of almost £12bn.
“The strong performance in March was in part due to consumers bringing forward new car purchases ahead of increases in vehicle excise duty from April 2025, and slightly more working days in March 2025 than in the same month in 2024 due to the timing of Easter.”
Kilkelly added: “The outlook remains uncertain with the latest indicators of consumer confidence showing a significant downturn in sentiment about economic conditions. Further cuts in interest rates should help to ease some of the pressure on real household disposable incomes.”
Kilkelly added: “As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”
