Phoebus Software comment on UK Finance arrears data

12 February 2026

Adam Oldfield, CEO at Phoebus Software:

“The latest UK Finance data shows arrears have fallen for the sixth consecutive quarter for both homeowners and buy-to-let. This suggests that property owners are managing their finances tightly, despite the persistent cost-of living pressures. This morning’s ONS data shows the UK economy grew just 0.1 per cent in December, lower than expected. However, the reduction in the base rate in December has seen mortgage rates come down, helping to boost affordability for those on tracker and variable rates.

“The latest figures also show a welcome fall in the number of mortgage repossessions in Q4. While the rate is still below the long-term average, the number of repossessions in 2025 was higher than the previous two years. Lenders need to remain vigilant, and ensure their systems are flagging any potential issues so the correct interventions can be made. The right servicing software should automate customer engagement while also helping lenders to identify cases that require personal attention.”