Phoebus comment on UK Finance Arrears and Possessions

15 May 2025

Richard Pike, chief of sales and marketing at Phoebus Software, says:

“It’s encouraging to see a fall in mortgage arrears across both homeowner and buy-to-let sectors this quarter, especially against the backdrop of ongoing cost-of-living pressures and a still-elevated interest rate environment. Today’s stronger-than-expected GDP figures, showing 0.7% growth in the first quarter, suggest that the UK economy has more underlying resilience than many anticipated.

"That said, affordability remains stretched for many borrowers, and the path ahead is still uncertain, especially with no immediate prospect of additional rate cuts. For lenders, the focus must remain on early engagement and using data intelligently to identify borrowers who may be starting to struggle. Ensuring support is both timely and targeted will be critical in maintaining this positive direction.”