Phoebus Software comment on UK Finance arrears and possessions data

14 August 2025

Phoebus Software’s head of sales and marketing, Richard Pike, says:

“The latest UK Finance figures present a mixed picture, with a welcome decline in mortgage arrears offset by a rise in possessions. This suggests that while fewer borrowers are falling behind on repayments, lenders are taking possession more frequently which would indicate a more tight grip on risk when it comes to potential recoveries.

“As eligibility criteria for new lending continues to loosen and the risk curve increases in many lenders, this shouldn’t lead to complacency. Automated primary servicing to triage routine cases will allow lender to dedicate resources where human intervention truly matters and get better results. Advanced automation not only reduces operational burden but enhances responsiveness and borrower outcomes.

“With the outlook for household finances remaining fragile, and the spectre of higher taxes looming, now is the moment for lenders to lean into intelligent, scalable arrears solutions. A more seamless servicing infrastructure will be essential to uphold performance and support vulnerable customers.”