The home credit market in context

At the end of 2012, total outstanding personal debt in the UK stood at £1.42trn. Of this, the vast majority, over £1.26 trn was mortgage debt. £185 billion was unsecured credit.

The mainstream market, limited to lower-risk borrowers, accounts for over 80% of consumer credit balances. Borrowers are usually salaried and have little or no history of non-payment. Most have a mortgage. The majority of mainstream borrowers have a credit card on which they pay off the full balance each month.

Provident competes in the non-standard market. In total there are approximately 12m consumers in this market. The home collected segment of this market comprises around 3m consumers, with approximately 9m consumers in the direct repayment segment.   

Bar chart showing the spread of the total credit market in £bn - Value of total personal debt balances in the UK: 1.45trn, Secured consumer credit - mortgage debt balances: 1.24trn, Unsecured consumer credit - balances:207bn, Unsecured consumer credit - credit issued:178bn

Sources

PFG estimates using data from:

Bank of England, British Bankers Association, Datamonitor, Finance and Leasing Association, Financial Services Authority, National Pawnbrokers Association, Office of Fair Trading, Office for National Statistics and individual company disclosures and announcements.