The drop reflects low levels of consumer confidence seen on the High Street, according to the FLA. For example, store instalment credit fell in June by 14% compared with June 2010. Store card spending remained level.
However, £26m was lent in second mortgages in June, up 7% on June 2010; £69m was lent in Q2, up 6% on Q2 2010. Around £282m was lent as a second mortgage in the year to June 2011, 11% down on the previous 12 months.
Geraldine Kilkelly, head of research and chief economist at the Finance & Leasing Association, said: "We are still waiting for significant signs of recovery in the consumer finance markets. During the last twelve months, we have seen some markets performing better than others. The decline in High Street spending has affected the retail store credit market."
