As of October 2024, monetary financial institutions (MFI) granted most of the lending to individuals in the United Kingdom (UK). Meanwhile, other non-bank lenders gave approximately 275 million British pounds worth of loans just in March 2024. During the past years, non-bank lenders have been increasing their market share. Non-MFI lenders also had a growing market share of the new consumer lending market in the UK.

Consumer Credit in the United Kingdom increased to 1692 GBP Million in August from 1669 GBP Million in July of 2025. 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.

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.

The effective interest rates of overdraft lending in the United Kingdom (UK) amounted to nearly 21 percent in March 2024. Meanwhile, outstanding fixed-rate secured loans had some of the lowest interest rates for household lending. Secured loans had, in general, lower interest rates than non-secured lending. In 2024, the average interest rates of personal loans in the UK remained relatively stable.

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).

The interest rates of most types of personal loans in the United Kingdom (UK) have increased slightly in 2024. However, the interest rates applied to personal loans of 3,000 British pounds were slightly lower than in the previous year, amounting to 18.68 percent. Smaller personal loans had, in general, higher interest rates than bigger loans.

Consumer lending, excluding student loans, in the United Kingdom (UK) reached nearly 33.51 billion British pounds in March 2025. 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 in 2022 was nearly as high as the number of people in the UK. The number of credit cards peaked in 2005, and it slightly decreased in the following months. However, there were still nearly 56 million credit cards in issue in the UK in 2023. The average amount spent per purchase on credit cards in the UK was roughly 59 British pounds in November 2024. This figure is much lower than the spending limit of most credit cards.

Mortgages made up most of the outstanding lending provided to households in the United Kingdom (UK) in May 2025. While loans excluding overdraft amounted to 68.6 billion British pounds that month, the value of mortgages reached nearly 1.5 trillion British pounds.

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.

United Kingdom Credit Cond: CL: N3: AB: Factor: Market Share Objectives data was reported at 1.200 % Point in Sep 2018. This records an increase from the previous number of 1.100 % Point for Jun 2018. United Kingdom Credit Cond: CL: N3: AB: Factor: Market Share Objectives data is updated quarterly, averaging 2.800 % Point from Jun 2007 (Median) to Sep 2018, with 46 observations. The data reached an all-time high of 25.200 % Point in Dec 2013 and a record low of -29.900 % Point in Dec 2007. United Kingdom Credit Cond: CL: N3: 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.KB021: Credit Conditions Survey: Corporate Lending: Next 3 Months.

United Kingdom 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. United Kingdom 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. United Kingdom 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.

United Kingdom Credit Cond: CL: L3: AB: Factor: Market Share Objectives data was reported at 0.200 % Point in Sep 2018. This records a decrease from the previous number of 1.100 % Point for Jun 2018. United Kingdom Credit Cond: CL: L3: AB: Factor: Market Share Objectives data is updated quarterly, averaging 1.050 % Point from Jun 2007 (Median) to Sep 2018, with 46 observations. The data reached an all-time high of 21.300 % Point in Dec 2013 and a record low of -27.400 % Point in Dec 2007. United Kingdom Credit Cond: CL: L3: 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.KB020: Credit Conditions Survey: Corporate Lending: Last 3 Months.

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

The United Kingdom Credit Card Transaction market is projected to add more than USD 150 Billion from 2024 to 2029 due to credit card transactions market evolves with shifting consu

Most of the loan portfolio of NatWest Group in 2023 was in the United Kingdom (UK). Its loan assets in that country have increased significantly, reaching over 361 billion British pounds that year. NatWest is a bank with headquarters in London. Most of the loans granted by NatWest were to customers rather than to other banks.

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

United Kingdom Credit Cond: CL: N3: AB: Factor: Pressures from Capital Market data was reported at 0.000 % Point in Sep 2018. This records an increase from the previous number of -0.900 % Point for Jun 2018. United Kingdom Credit Cond: CL: N3: AB: Factor: Pressures from Capital Market data is updated quarterly, averaging 0.450 % Point from Jun 2007 (Median) to Sep 2018, with 46 observations. The data reached an all-time high of 21.200 % Point in Sep 2011 and a record low of -50.100 % Point in Sep 2007. United Kingdom Credit Cond: CL: N3: 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.KB021: Credit Conditions Survey: Corporate Lending: Next 3 Months.

Europe's Collection Agencies and Credit Bureaus industry has faced numerous challenges in recent years. Lending activity has been muted as businesses have become cautious about borrowing in the face of turbulent economic conditions and rising interest rates, draining the pool of debt available for collection. Revenue is expected to grow at a compound annual rate of 2.3% over the five years through 2025 to €24.2 billion, including an estimated jump of 3.1% in 2025. In recent years, the industry has witnessed a significant transformation driven by digitalisation. Collection agencies and credit bureaux embraced digital platforms and automation tools to streamline processes, enhance data analysis efficiency and improve consumer communication. The integration of AI and alternative credit scoring models has revolutionised credit assessment practices, offering more inclusive evaluation methods and personalised debt collection strategies. Credit bureaus and debt collectors have had to navigate an increasingly complex regulatory environment, as regulators look to prevent harassment and unfair practices. If lenders fail to comply, debts may be more difficult to enforce, and debt collection agencies may face increased disputed claims, which could impact revenue growth. Credit bureaus provide financial health and risk data on companies, which is critical during mergers or acquisitions, meaning M&A activity is a significant determinant of demand. M&A levels have been highly volatile over recent years amid the changing base rate environment. Over 2025, with further rate cuts expected across Europe, M&A is set to pick up, offsetting lingering uncertainty surrounding geopolitical tensions and US tariffs, supporting profit of 23.1%. Revenue is slated to mount at a compound annual rate of 3.2% over the five years through 2030 to €28.3 billion. Looking ahead, Europe's collection agencies and credit bureaux are poised for further evolution and innovation. Expanding alternative data sources for credit assessment will provide more comprehensive credit profiles and improve risk assessment accuracy. Companies will also continue to integrate blockchain technology for secure data management, offering increased data security, fraud prevention and operational efficiencies. With these developments will come greater data scrutiny, as regulations like the General Data Protection Regulations lifting compliance costs for credit bureaus and data collection agencies.

The effective floating interest rate of outstanding consumer credit (not including overdraft) in the United Kingdom was over 6.54 percent in June 2025. The floating rate for secured loans and unsecured consumer lending was 5.77 percent.

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Carbon Credit Market Size 2025-2029

The carbon credit market size is forecast to increase by USD 1,966.3 billion at a CAGR of 32.1% between 2024 and 2029.

The market is experiencing significant growth due to rising emissions in the Earth's atmosphere, which necessitates the need for businesses and individuals to offset their carbon footprint. Booming investment and partnership deals in this market are driving its expansion, with various organizations recognizing the importance of reducing their carbon emissions and contributing to environmental sustainability. However, the fluctuating prices of carbon credits pose a challenge for market participants, as they can impact the profitability of carbon offsetting projects.
To stay competitive, market players must closely monitor carbon credit prices and adapt their strategies accordingly. In summary, the market is witnessing increasing demand due to growing environmental concerns and regulatory requirements, but its growth is influenced by the volatility of carbon credit prices.

What will the Carbon Credit Market Size during the forecast period?

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The market has gained significant traction in recent years as businesses and individuals seek to offset their carbon emissions and contribute to the global decarbonization effort. This market facilitates the buying and selling of carbon credits, which represent the right to emit a specific amount of greenhouse gases. The voluntary carbon market plays a crucial role in this context, enabling organizations to offset their carbon footprint beyond regulatory requirements. Net-zero greenhouse-gas emissions have become a key business objective, driving demand for carbon credits from various sources. Forestry projects are a significant contributor to the market. These projects involve the protection, restoration, or reforestation of forests, which act as carbon sinks, absorbing and storing carbon dioxide from the atmosphere.
Carbon emission reduction projects, such as renewable energy and energy efficiency initiatives, also contribute to the market. Carbon storage projects, including those focused on geological storage, are another essential component. The market's dynamics are influenced by various factors, including regulatory policies, market prices, and technological advancements. As the world moves towards a low-carbon economy, the demand for carbon credits is expected to continue growing, making it an attractive investment opportunity for businesses and individuals alike.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Power
  Energy
  Transportation
  Industrial
  Others


Type

  Compliance
  Voluntary


Geography

  Europe

    Germany
    UK
    France
    Italy


  Asia

    China


  North America



  Rest of World (ROW)

By End-user Insights

The power segment is estimated to witness significant growth during the forecast period.

Carbon credits represent financial instruments that enable organizations to invest in emission reduction projects, contributing to the global effort to transition from fossil fuels to renewable energy sources. These initiatives, which focus on conservation, biodiversity, and livelihoods, provide a means to reduce greenhouse gas emissions and mitigate the effects of climate change.

Additionally, the energy sector, specifically power generation, can benefit significantly from this shift, as renewable energy sources offer a sustainable and non-depleting alternative to coal and natural gas. To achieve the international goal of limiting global temperature rise to 2°C or 1.5°C above pre-industrial levels, the reduction of greenhouse gas emissions is crucial. Carbon credits facilitate this transition by incentivizing investment in renewable energy projects and reducing the overall carbon footprint.

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The power segment was valued at USD 61.30 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

Europe is estimated to contribute 84% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The European Union (EU) held a significant share of The market in 2023, with countries like the UK and Germany being major buyers. To achieve climate neutrality by 2050, the EU established the International Emissions Trading System (ETS) in 2005, which sets the cost of CO2 emissions and uses