16Jan

The Financial Conduct Authority (FCA) has issued some statistics regarding the retail lending industry, some of which are rather noteworthy.

Firstly, it should be noted that bringing consumer credit regulation under the auspices of the FCA has transformed the regulator’s workload. There are now 30,000 firms with credit broking permissions alone, which is similar to the total number of firms the FCA regulated prior to April 2014.

However, the need for additional consumer credit regulation was illustrated by some of the other statistics, which show that 60% of the UK adult population have a credit card and 40% have an overdraft, compared to 27% who have a mortgage.

Amongst small and medium sized companies, 48% have a credit card and 43% have an overdraft.

The FCA has also released details of the total balances outstanding on various types of credit:

• £1.1 trillion is owed on residential mortgages
• £0.2 trillion is outstanding on buy-to-let mortgages
• £117 billion is the total balance of all fixed sum unsecured credit borrowing
• £100 billion is outstanding on commercial mortgages
• £72 billion is owed on revolving unsecured consumer credit
• £1 billion is owed each year on secured consumer credit

The next set of data concerns the mortgage sector, rather than consumer credit. The FCA has revealed that the ‘big six’ mortgage providers: Lloyds Banking Group, HSBC Group, Barclays, RBS Group, Santander UK and Nationwide collectively have a 77% market share.

There are 11.1 million mortgages in the UK, and the average amount outstanding on each of these is £118,341.

Finally, the document shows some fairly startling figures regarding household debt. Total consumer credit lending has grown by 10.3% in the 12 months to September 2016. Average debt per household, including mortgages and all other forms of borrowing, is £55,504. Finally, the household debt to income ratio has risen to 143% – this ratio is calculated by dividing total monthly debt payments by total gross monthly income.

All figures are correct as of November 23 2016.

The information shown in this article was correct at the time of publication. Articles are not routinely reviewed and as such are not updated. Please be aware the facts, circumstances or legal position may change after publication of the article.