March GDP figures - reaction from Phoebus Software

14 May 2026

Richard Pike, sales and marketing director at Phoebus Software:

“However you view the latest figures, the UK economy is near stagnant with only modest growth since the start of the year, and uncertainty around interest rates and inflation levels confidence is in short supply. That said, most mortgage businesses I speak to are still doing great volumes. This uncertainty, including political instability in Westminster, has sent bond yields surging to near 20-year highs this week and sent the pound and equity markets falling. This will put pressure on the cost of capital across the economy, including mortgage rates. Although we have seen some product rate cuts recently, there’s a good chance that mortgage borrowing will become more expensive in the short term and put continued pressure on household finances. The country and the markets need the Government and the Bank of England to do all it can to steady the ship, but how achievable that is with the current incumbent in No 10 remains to be seen.”