UK Consumer Attitudes Towards Credit Products Market Report
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Providing the most comprehensive and up-to-date information and analysis of the Consumer Attitudes towards Credit Products market, and the behaviours, preferences and habits of the consumer.
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What are the key challenges facing the industry and how fast are its rates of growth? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?
Products covered in this report
This Report examines both secured and unsecured lending. For the purposes of the Report, these two types of credit are defined as follows:
Secured lending – lending that is secured against a property, ie the ownership of the property is at risk if repayments are not made to clear the debt. This is primarily mortgages used to purchase properties, but also includes homeowner loans where homeowners borrow additional funds secured against their home.
Unsecured lending – any type of lending that does not fit the definition of secured lending, ie lending that is not secured against a property. This includes a wide range of consumer credit products such as credit cards, personal loans, and current account overdraft facilities. Please note that this definition also includes car finance plans which can be secured against the vehicle being purchased.
What you need to know
Cheap credit and rising consumer confidence has ensured continued growth in unsecured lending over the last few years, with the market reaching £272 billion in 2017. However, annual growth has fallen for the second year running, signalling a decrease in appetite for credit. Similarly, growth in mortgage lending has continued, but at a much slower rate than in 2016.
In November 2017, the Bank of England increased the base rate for the first time in 10 years. This has prompted concerns about the impact of rising interest rates, and Mintel’s consumer research shows that the majority of people are hoping to clear or reduce their debt over the next two years.
However, despite these good intentions, the overall amount outstanding in unsecured debt continues to rise. Financial pressures on households are making it hard for people to reduce their debt, and when compared to Mintel’s 2017 consumer research, fewer people than before expect to fully clear debt, recognising that they will continue to rely on credit to help manage the cost of day-to-day expenses.
This Report analyses the current state of the unsecured and secured lending markets, and the key drivers affecting growth. It explores consumers’ attitudes towards credit products and their previous and expected borrowing going forward. It looks at what is important to people when choosing a credit provider, and the opportunities that Open Banking has created for innovation in helping people to manage their credit products.
Expert analysis from a specialist in the field
Written by Jessica Galletley, a leading analyst in the Financial Services sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
Slower annual growth in lending signals a fall in demand, as concern around the potential impact of rising interest rates grows. But, affordability constraints will still make it difficult for many people to clear their debt and significantly reduce their borrowing. Open Banking gives lenders an opportunity to develop tools and services that can help people manage their debt more effectively and find products most suitable to their needs.
Financial Services Analyst
What you get
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
* This is a sample representation of the report layout and does not reflect the research included in this report.
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