Phoebus reaction to Mortgage Lenders and Administrators Statistics

09 June 2026

Richard Pike, Chief Sales and Marketing Officer at Phoebus Software:

“The Bank of England’s latest figures indicate the mortgage market made a steady start to 2026. The fall in gross mortgage advances shows the market was still weak at the start of the year, but the rise in commitments shows that confidence was picking up in Q1 before the market shocks caused by the Iran conflict.

“There was a continued shift towards remortgaging as a significant number of borrowers reach the end of fixed-rate deals. This will remain a defining feature of the market throughout the year, as households continue to adapt to a higher rate environment.

“Encouragingly, arrears continue to trend downwards, and are at their lowest since Q3 2023, highlighting the resilience of borrowers despite ongoing affordability pressures. This will provide reassurance to lenders that, while cost pressures persist, most customers are managing to stay on top of their repayments.

“We saw a gradual increase in possession activity, although the numbers remain lower than last year. While I don’t believe its cause for alarm, it’s important that lenders remain vigilant and ensure their servicing teams are equipped to support those customers who may still be vulnerable.

“Looking ahead, the key challenge for the market will be balancing affordability constraints with the need to support lending growth. While I expect to see modest growth over the course of the year, sustained momentum will depend on further improvements in consumer confidence and greater certainty around the interest rate outlook.”