Phoebus reacts to BoE MLAR data

08 September 2026

Richard Pike, sales and marketing director at Phoebus Software, said:

“The latest MLAR figures show just how difficult it has been for the mortgage market to find a clear direction this year. There are certainly signs of market resilience with new mortgage commitments rising, however, uncertainty around the economic outlook and the path for interest rates continues to weigh on borrowers and lenders alike.

“While gross mortgage advances rose 11.1% during the quarter, new commitments only rose 1.4%, showing the market isn’t generating a huge amount of new business. Much of the increase in advances is being driven by remortgage activity as borrowers reach the end of fixed-rate deals. This shows how remortgaging remains a vital part of activity.

“Encouragingly, arrears continue to point towards the underlying resilience of borrowers. While affordability remains a concern, most households continue to meet their repayment commitments, suggesting that the pressures facing the market have not been translated into widespread financial distress.

“Possessions paint a similar picture, albeit with a sharper decrease in numbers. This should also be reassuring that households are continuing to meet commitments amidst ongoing uncertainty and financial difficulties.

“Looking ahead, the key challenge for lenders will be managing a market where customer needs are becoming increasingly varied. Some borrowers will be looking for greater flexibility as they refinance, while others will need additional support as pressures around affordability persist. Lenders that can combine effective servicing with the ability to adapt products and processes to changing customer circumstances will be best placed to navigate the next phase of the market.”