Phoebus comment on inflation

16 July 2025

Richard Pike, chief sales and marketing officer at Phoebus, says:

“Today’s rise in inflation will be a setback for those hoping to see interest rates come down this summer. With the Bank of England’s 2% target slipping further out of reach, policymakers are likely to remain cautious.

“For the housing market, it means continued uncertainty. While the FCA’s recent decision to relax affordability requirements could encourage more activity among prospective buyers and those looking to remortgage, the real impact remains to be seen. Affordability pressures will persist for many borrowers on existing deals, particularly as fixed-rate terms come to an end.”

“In this environment, it’s vital that lenders stay agile. Having the right technology in place to manage risk, adapt to shifts in sentiment and deliver a smooth customer journey will be key to supporting brokers and borrowers through ongoing volatility.”