Arrears fall for seventh consecutive quarter - Phoebus reaction

14 May 2026

Richard Pike, sales and marketing director of Phoebus Software:

“The latest UK Finance data showing arrears continuing to fall suggests that, despite a challenging backdrop, many borrowers are still managing to stay on top of their mortgage commitments. This resilience comes even as the UK economy has remained sluggish in early 2026, with low growth and ongoing global pressures – particularly higher energy costs and persistent inflation – continuing to weigh on household finances.

“Lower mortgage rates compared to peak levels in 2024, alongside some stabilisation in inflation, have provided a degree of relief, particularly for borrowers on variable and tracker mortgages. However, the picture is far from risk-free. “Borrowers coming off ultra-low fixed-rate deals are still facing a significant jump in monthly payments, and labour market pressures are beginning to build.

“There is a note of caution as repossessions have risen slightly, underlining the importance of timely intervention to manage early signs of stress. The figure, however, remains well below the long-term average.

“Lenders should not become complacent though. The environment remains fragile, and early intervention is key. Having robust servicing systems in place that can identify emerging stress and support customers quickly will be critical to maintaining this positive trend.”