Lending to individuals

15.08.2005 The increase in total net lending to individuals in June (£8.8 billion) was less than in May and weaker than the previous six month average.


Within the total, the increase in net lending secured on dwellings (£7.5 billion) was weaker than the increase in May but stronger than the previous six month average. The twelve-month growth rate fell from 11.1% in May to 10.8%. The number of loans approved for house purchase was in line with May, while those for remortgaging were higher and those for other purposes were lower.
The increase in consumer credit (£1.3 billion) was weaker than May’s outturn. Within this, both net credit card lending and net other loans were weaker than in May and their respective previous six month averages.
15th August 2005

The growth of internet shopping and supermarket home delivery services have helped fuel growth within the commercial vehicle sector, resulting in an 11% increase in funding for commercial vehicles during 2004 compared to 2003. This is according to an analysis of the latest Finance & Leasing Association (FLA) figures by commercial vehicle finance specialists Alliance & Leicester Commercial Finance.
Willie Paterson, Head of Commercial Vehicles at Alliance and Leicester Commercial Finance, said: "The commercial vehicle market is growing at a strong rate each year and the latest industry figures* reveal that it is the light commercial vehicle sector which has experienced the most growth during 2004. The FLA figures reveal that in the sector, hire purchase continued to be the most popular finance choice.
The FLA figures also showed that operating lease funding experienced the most growth by funding type, with a 20% increase in 2004 compared to 2003.
Willie Patterson continued: "Operating lease is a finance option which is flexible to the needs of a business, and Alliance & Leicester Commercial Finance has certainly seen a rise in the number of requests for this type of funding. This rise is also a result of the limited number of finance companies providing this form of funding due to the specialist nature of the product. This type of funding is particularly popular because the asset is off the balance sheet which in turn brings a range of associated benefits to a business."
The findings from the FLA are supported by the most recent statistics from the Society of Motor Manufacturers and Traders (SMMT). These statistics show that the UK commercial vehicle market has benefited from continued growth over the last four to five years.
FLA Director General Martin Hall said: "FLA members, which include Alliance & Leicester Commercial Bank, can bring added value to their clients by their thorough understanding of the assets that they finance."
Surge in net use for good rate hunting
IF's move is also designed to target the increasing proportion of borrowers who are turning to the internet to search for better value loans. ICM Research for Intelligent Finance has shown that there has been a substantial increase in the number of people using the net to search for a better deal**. Nearly one in four (24%) of UK adults said they would go online to look for a loan, an increase of 70% on the previous year. This rises to half of 18-24 year olds (47%) who say they are now using the internet to hunt down competitive loans.