Arrears & Possessions - Comment from Melanie Spencer

14 May 2026

Melanie Spencer, growth director of Target Group, part of Tech Mahindra, said:

“There’s a surprising amount of positive new about. The PMI showed business activity rising in April thanks to an upturn in manufacturing production and output from the services sector. Retail sales rose in March, even when excluding the increased cost of fuel. Living standards are improving at the fastest pace since 2022, according to the ONS. And the economy unexpectedly grew during the first full month of the Iran war – suggesting the Middle East conflict has not yet affected growth as much as feared. Growth of 0.3 per cent in gross domestic product in March, down from a revised 0.4% rise in February. That was significantly better than I expected.

“On the face of it, these figures back up that rosy assessment. But these stats also highlight that it’s no time for complacency: the number of properties taken into possession has increased with a total of 1,250 homeowner mortgaged properties being taken into possession in Q1 2026. This is the thin end of the wedge. Lenders should aim to get on the front foot to ensure their servicing operations have the right colleagues, processes, and platforms in place to handle the increased demand and deliver the proper customer outcomes to meet their regulatory obligations. A strong customer experience is also critical – proactive communication and early engagement with borrowers can encourage customers to seek support sooner, helping to reduce arrears and improve long-term outcomes for both lenders and borrowers.”