Phoebus reaction to inflation rising to 3.5%

21 October 2026

Richard Pike, chief sales and marketing officer at Phoebus Software:

“Another rise in inflation is unwelcome news for households already dealing with persistent cost pressures. With inflation moving further away from the Bank of England’s 2% target, the prospect of interest rates staying higher for longer adds another layer of uncertainty for borrowers and the wider housing market.

“For mortgage borrowers, the concern is not just the headline rate of inflation but what it means for borrowing costs and households budgets. Those coming to the end of fixed-rate deals are having to reassess their finances, while prospective buyers remain sensitive to what they can realistically afford. Lenders need to be equipped to respond to these differing circumstances.

“With the Budget fast approaching, the Chancellor faces a difficult balancing act. Households need relief from rising costs, but measures that add to inflationary pressure could make the Bank of England’s job harder and prolong the squeeze on borrowers. The priority should be supporting sustainable growth without creating further uncertainty for the housing market.”