Consumer Credit in the United Kingdom increased to 1935 GBP Million in February from 1828 GBP Million in January of 2026. This dataset provides the latest reported value for - United Kingdom Consumer Credit - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Consumer lending, excluding student loans, in the United Kingdom (UK) reached nearly 35.89 billion British pounds in January 2026. These figures have thus recovered from the stark decline suffered in April 2020. The value of new consumer credit granted also decreased during the economic crisis of 2007, although more gradually. The category consumer lending includes loans and advances to individuals through credit cards and personal loans. The majority of consumer credit is through credit card lending. Mortgage lending The value of outstanding mortgage lending in the UK is far higher than that of consumer credit. Additionally, the outstanding volume of consumer credit has fluctuated more in the past, while mortgages have had a more consistent growth. In the second quarter of 2024, the value of gross new mortgage lending in the UK amounted to over 60 billion British pounds. Credit card payments With billions of British pounds in gross consumer lending through credit cards, it’s unsurprising that the number of credit cards in circulation is high as well. The average amount spent per purchase on credit cards in the UK was more than 55 British pounds at the end of 2025. This figure is much lower than the spending limit of most credit cards.

In June 2025, most consumer loans in the United Kingdom (UK) were granted by monetary financial institutions (MFI). Nevertheless, other lenders gave over 12.7 billion British pounds worth of consumer credit. During the past years, non-bank lenders have been increasing their market share. Credit cards made up most of the new monthly consumer lending in the UK.

United Kingdom Credit Cond: CL: L3: AB: Factor: Pressures from Capital Market data was reported at 0.000 % Point in Sep 2018. This records a decrease from the previous number of 0.900 % Point for Jun 2018. United Kingdom Credit Cond: CL: L3: AB: Factor: Pressures from Capital Market data is updated quarterly, averaging 0.750 % Point from Jun 2007 (Median) to Sep 2018, with 46 observations. The data reached an all-time high of 25.100 % Point in Jun 2007 and a record low of -38.200 % Point in Dec 2007. United Kingdom Credit Cond: CL: L3: AB: Factor: Pressures from Capital Market data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB020: Credit Conditions Survey: Corporate Lending: Last 3 Months.

The UK consumer credit market experienced challenging conditions in 2019. Lending in 2020 is set to rise by 5%, but overall growth will remain flat at around 4-5% throughout the rest of the forecast period. This means gross advances are expected to total £372.4bn by 2023. The following factors will drive the market over the next few years: Read More

Credit card issuance revenue is slated to dip at a compound annual rate of 7.3% over the five years through 2025-26 to £20.5 billion, including estimated growth of 9.5% in 2025-26. The cost-of-living crisis has been both a blessing and a curse – on the one hand, households have turned to credit cards to pay for necessities as disposable incomes have taken a hit; on the other, it’s caused a higher rate of default and a lower level of total spending. Rampant inflation has made revenue very volatile. Drops in disposable income have left households scrambling to pay for necessities, with the ONS finding that 21% of adults had to use personal loans or credit cards to afford their living costs across 2023-24. Credit card issuers earn a large portion of their revenue from interest income. When the Bank of England ramped up interest rates to curb spiralling inflation over the two years through 2023-24, issuers saw their revenue skyrocket. Although interest rate cuts occurred over 2024-25, the average rate issuers charged borrowers continued to climb, reflecting the rising number of defaults, and issuers seeking to maintain profitability after being forced to raise provisions to cover losses. Interest rates will continue to drop in 2025-26, but this will make borrowing more affordable and reduce the likelihood of defaults, supporting lending activity and aiding revenue growth during the year. The likely decline in defaults will also allow issuers to reduce provisions, lifting the average industry profit margin to 5.9% in 2025-26. Credit card issuance revenue is forecast to expand at a compound annual rate of 4.1% over the five years through 2030-31 to reach £19.3 billion. Demand for credit cards from younger demographics is set to pick up in the coming years, with TransUnion finding more Gen Z consumers getting credit cards in 2023 compared to Millennials a decade earlier, positioning the industry for solid growth. The intensifying threat of buy-now-pay-later platforms will also cool as the FCA clamps down on the industry, introducing new regulations that increase transparency and checks to ensure borrowers can repay their debt. Issuers will also seek to capitalise on the growing market of environmentally conscious consumers, using recycled plastics and biodegradable alternatives for credit cards. This will give smaller issuers a healthy source of competition to compete with more established companies, weighing on market share concentration.

The UK Home Equity Lending Market Report is Segmented by Product Type (Fixed Rate Loans, Home Equity Line of Credit), Provider (Banks, Credit Unions, Non-Banking Financial Institutions, Others), and Mode (Online, Offline). The Market Forecasts are Provided in Terms of Value (USD).

United Kingdom Credit Cond: SL: L3: HH: CA: Factor: Market Share Objectives data was reported at 10.400 % Point in Sep 2018. This records an increase from the previous number of 0.400 % Point for Jun 2018. United Kingdom Credit Cond: SL: L3: HH: CA: Factor: Market Share Objectives data is updated quarterly, averaging 8.350 % Point from Jun 2007 (Median) to Sep 2018, with 46 observations. The data reached an all-time high of 34.900 % Point in Jun 2013 and a record low of -28.000 % Point in Mar 2009. United Kingdom Credit Cond: SL: L3: HH: CA: Factor: Market Share Objectives data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB016: Credit Conditions Survey: Secured Lending: Last 3 Months.

United Kingdom Student Loan Market is set to grow at over 5.45% CAGR from 2026 to 2031, driven by policy reforms and rising tuition expenses.

Market Size statistics on the Credit Card Issuance industry in the UK

Uncover the dynamic UK consumer banking market's growth trajectory (2025-2033). This comprehensive analysis reveals key drivers, trends, and challenges facing major players like Allied Irish Bank, Metro Bank, and others. Explore market segmentation, regional data, and future projections.

Credit Cond: SL: N3: HH: CA: Factor: Market Share Objectives data was reported at 13.100 % Point in Sep 2018. This records an increase from the previous number of 8.900 % Point for Jun 2018. Credit Cond: SL: N3: HH: CA: Factor: Market Share Objectives data is updated quarterly, averaging 9.950 % Point from Jun 2007 (Median) to Sep 2018, with 46 observations. The data reached an all-time high of 29.900 % Point in Dec 2012 and a record low of -25.500 % Point in Dec 2007. Credit Cond: SL: N3: HH: CA: Factor: Market Share Objectives data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB017: Credit Conditions Survey: Secured Lending: Next 3 Months.

This statistic shows the amount owed to banks in consumer credit lending in the United Kingdom (UK) as of the end of March 2017. In total ** billion British pounds are owed to either bank or non-bank institutions for dealership car financing. In total ** billion is owed in credit card lending and ** billion British pounds in personal loans, overdrafts and other lending.

United Kingdom - Credit from All sectors to Households & NPISHs at Market value, Domestic currency (incl. conv. to current ccy made using a fix parity), Adjusted for breaks

United Kingdom - Credit from Banks, domestic to Private non-financial sector at Market value, Domestic currency (incl. conv. to current ccy made using a fix parity), Adjusted for breaks

There is only one base interest rate per currency, corresponding to the bank’s unsecured lending/borrowing rate (such as LIBOR). The interest rate used to discount cashflows may include a credit spread above or below the base rate.

The risk-free discount factor is exp (-rT) where r is the interest rate and T is the maturity.

The risky discount factor is exp[-(r+s)T] where s is the credit spread.

Credit spread can be derived by either structural model or reduced-form (intensity) model. The structural approach regards default as an endogenous event by focusing on the capital structure of the firm. Whereas the reduced-form approach does not explain the event of default endogenously, but characterizes it exogenously by a jump process.

Structural models are derived from theory and often contain some unobservable assumptions, while reduced-form models use only market observable information. Therefore, many practitioners in the credit trading arena have tended to gravitate toward the reduced-from models given their mathematical tractability and market compatibility.

Many researchers group similar credits. These groupings are loosely referred to as rating categories. Regardless of how the rating categories are constructed and of how many categories there are, it is necessary to specify the default likelihood for each category and provide a credit spread to correspond to each category.

FinPricing offer forward credit spread curves for various sectors and ratings. These curves are derived/bootstrapped through a compilation of market prices of credit-bearing instruments provided by major dealers. We review the contributed information on a daily basis to ensure accuracy and consistency.

United Kingdom Credit Cond: UL: L3: HH: AB: Factor: Market Share Objectives data was reported at -2.900 % Point in Sep 2018. This records a decrease from the previous number of 4.500 % Point for Jun 2018. United Kingdom Credit Cond: UL: L3: HH: AB: Factor: Market Share Objectives data is updated quarterly, averaging 1.550 % Point from Jun 2007 (Median) to Sep 2018, with 46 observations. The data reached an all-time high of 19.000 % Point in Sep 2015 and a record low of -11.000 % Point in Mar 2018. United Kingdom Credit Cond: UL: L3: HH: AB: Factor: Market Share Objectives data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB018: Credit Conditions Survey: Unsecured Lending: Last 3 Months.

Discover the latest insights on the booming UK retail banking market, projected to reach £90.97 billion by 2033. Analyze market trends, key players like HSBC & Barclays, and the impact of digital banking on this dynamic sector. Get the data-driven analysis you need for strategic decision-making. Recent developments include: August 2024: Lloyds Bank launched a USD 137 cash offer for students opening current accounts. To qualify, students must deposit at least USD 622 between August 1 and October 31, 2024. Student account holders will also receive a 20% discount on selected Student Union events and can earn 2% interest on balances up to USD 6,219.September 2023: HSBC pioneered a partnership with Nova Credit, making it the first UK bank to allow newcomers to access their credit history from abroad. This initiative aims to facilitate smoother financial integration for individuals relocating to the United Kingdom.. Key drivers for this market are: The Shift Toward Digital Banking, with Customers Increasingly Using Online and Mobile Banking Services. Potential restraints include: The Shift Toward Digital Banking, with Customers Increasingly Using Online and Mobile Banking Services. Notable trends are: Deposit Trends and Digital Transformation Driving Traditional Banking.

In February 2024, the monthly new consumer lending through credit cards in the United Kingdom (UK) amounted to nearly 23 billion British pounds. The monthly gross consumer lending level excluding student loans increased steadily until March 2020, when it decreased sharply. Non-credit card consumer lending made up a smaller fraction of the total.

UK Auto Loan Market size was valued at USD 90.24 Billion in 2024 and is expected to reach USD 128.14 Billion by 2032, growing at a CAGR of 4.50% from 2026-2032.

UK Auto Loan Market Drivers

Demand for Vehicle Ownership: A fundamental driver is the ongoing need and desire for personal vehicles among UK consumers and businesses. This demand is influenced by factors like: * Population Growth and Urbanization: While the UK is a mature market, population shifts and the needs of urban living can still drive vehicle purchases. * Personal Convenience and Necessity: For many, owning a car remains essential for commuting, family needs, and leisure activities. * Preference for Personal Mobility: Despite the growth of alternative transportation, personal car ownership remains a strong preference for a significant portion of the population.

Economic Factors: The overall health of the UK economy plays a crucial role: * Consumer Confidence: When consumers feel financially secure, they are more likely to make large purchases like vehicles, often relying on financing. * Disposable Income: Higher disposable income allows more individuals to afford car payments. * Employment Rates: Stable or rising employment provides the security needed for taking on loan obligations.

Interest Rates: The cost of borrowing money directly impacts the auto loan market: * Bank of England Base Rate: The central bank's rate influences the interest rates that lenders charge for car loans. Lower base rates generally lead to more affordable loans, stimulating demand. * Lender Competition: Competition among banks, credit unions, and other financial institutions can lead to more attractive interest rates for consumers. * Individual Creditworthiness: A borrower's credit score significantly affects the interest rate they will be offered. Higher scores typically result in lower rates.

1. Lending Practices and Regulations: How loans are offered and regulated shapes the market:
2. Loan Terms and Structures: The availability of various loan terms (shorter vs. longer) and structures (e.g., Personal Contract Purchase - PCP, Hire Purchase - HP) influences affordability and consumer choice. PCP remains the most common method for new car financing in the UK.
3. Regulatory Environment: The Financial Conduct Authority (FCA) plays a crucial role in regulating the market, ensuring fair practices and consumer protection. Recent scrutiny regarding discretionary commission models highlights the impact of regulation.