Comment from Phoebus on arrears data

13 November 2025

Phoebus Software’s chief sales and marketing officer, Richard Pike:

“The latest UK Finance data shows the number of homeowner mortgages in arrears is continuing to decline. While the cost‐of‐living pressure persists, the fact that arrears have fallen for a second quarter suggests the bulk of borrowers are managing. However, the 4% increase in repossessions is worrying news, particularly on the back of the unemployment data this week, which shows the jobless figure has reached 5%.

“While the fall in arrears is welcome, lenders can’t afford to be complacent. Many borrowers took longer deals when rates were much lower and so there remains a risk of payment shock when their deals end over the coming months. Lenders should remain vigilant, particularly as criteria relax and risk appetite rises, and ensure their systems are flagging any potential issues so the correct interventions can be made.

“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 automated seamless servicing infrastructure will be essential to uphold performance and support vulnerable customers.”