Phoebus reacts to latest Money & Credit stats

29 July 2026

Richard Pike, sales and marketing director at Phoebus Software:

"May's 15% drop in approvals followed a sharp spike in April as buyers rushed to lock in rates, so some correction was always likely. June's figures are a mixed picture rather than a clean return to normality - approvals of 58,200 are up only modestly on May and still below the six-month average of 61,400, while net borrowing jumped to £7.7 billion, more than double May's £3.3 billion.

“That jump points to April's approvals working through to completion, and to the ongoing wave of fixed-rate maturities feeding through into gross lending, rather than any fresh surge in new buyer demand.

"A big part of this is the refinancing wave finally landing - borrowers coming off five-year fixes taken out when rates were near record lows are now rolling onto pricing that can be several percentage points higher, and for many that's a genuine payment shock. Lenders and their servicing systems need to be ready to support these customers proactively, not just process the switch.

"The underlying story is still that swap rates remain volatile, driven by the escalating US-Iran conflict, and consumer confidence stays fragile. Approvals - the better guide to what's coming next - simply aren't showing the same strength as the net borrowing headline.

"Lenders have been repricing upward in recent weeks, and the impact of that, along with any post-MPC repricing, will show up more clearly over the next few months.”