In an evolving financial landscape, staying informed about consumer affordability trends is crucial for lenders to navigate risk and grow.
The Experian Affordability Update is based on real, unbiased data, offering a clear and accurate view of the current financial situation. Unlike predictive models, this report uses actual data to provide a reliable snapshot of consumer affordability.
Our latest quarterly update is out now, and it paints a picture of cautious optimism. With consumer confidence on the rise, the mortgage market is showing signs of recovery. Mortgage applications are up, and new credit card lending has increased 15% year-on-year. This resurgence signals a promising opportunity for lenders to grow, provided they can identify and attract the right consumers.
Read the key findings below.
Mortgage market revival
After a period of high mortgage rates and inflation, the housing market is stabilising. Consumer and lender confidence that turbulent times are behind us can be seen in the increasing number of mortgage applications and activity returning to the housing market.
Credit card market growth
The credit card market continues to grow, with a 6% increase in new applications and a 15% rise in new lending year-on-year. This growth is driven by both consumer demand and lender confidence, particularly among younger and lower-income groups.
The impact of economic trends
Despite the positive trends, 13% of the UK population is now classified as BiFD. The update highlights the importance of lenders being proactive in supporting these consumers, especially with upcoming regulatory changes from the FCA.
Vigilance for Borrowers in Financial Difficulty (BiFD)
Despite the positive trends, 13% of the UK population is now classified as BiFD. The update highlights the importance of lenders being proactive in supporting these consumers, especially with upcoming regulatory changes from the FCA.
Get the all the latest consumer affordability insights
For lenders, the report identifies significant opportunities to expand responsibly. By understanding the detailed trends and consumer behaviours outlined in the update, lenders can make informed decisions that balance growth with risk management.
The latest update not only highlights the current state of the market but also provides actionable insights to help you navigate the future. Don’t miss out on this opportunity to stay ahead of the curve.
Read the full Q2 Affordability Update now >
For more information on how Experian can support your business in this changing marketplace, mitigate credit risk, and support vulnerable customers, please contact us businessuk@experian.com.
Read the latest Affordability Update
Based on real Experian-owned data on millions of consumers across the UK.
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