Phoebus Software responds to today's BOE base rate decision

19 March 2026

Richard Pike, sales and marketing director of Phoebus Software, said:

“The Iran conflict has global implications, and the restricted supply of oil is affecting every economy in the world. Swap rates have risen on the back of inflationary fears, and lenders have been pulling rates at the fastest pace since the 2022 mini-budget.

“With no clear exit plan to the Iran war and ongoing price volatility, the Bank of England had no choice but to hold rates. How long this conflict continues will determine where rates move in the future.

“From a servicing perspective, product transfer rates are rising so lenders will need to manage payment shocks carefully, and there is always the concern that arrears will start to rise if affordability is affected by rising prices. On a positive note, rates are still lower than a year ago so there is hope that the market can continue to recover, albeit slowly.”