Lenders will again be looking to do everything they can - Comment on the UK Finance arrears and possession figures for Q3 from Adam Oldfield at Phoebus Software

Adam Oldfield, chief revenue officer at Phoebus Software, says “Put into perspective the number of mortgages in arrears accounts for just 0.93% of all homeowner mortgages. However, the rate at which arrears is increasing is the worrying statistic that is unlikely to fall in any time soon.

“As worrying as this increase may be to many, the number of possessions fell. This shows the increased forbearance that lenders are showing to struggling borrowers.

“When you consider that lenders had to stress test borrowers up to eight per cent for almost all of the mortgages in existence today, the question is why is this happening? The answer, unfortunately, is most likely that the ultra-low interest environment that we have experienced over the last few years has led to a level of complacency. The rising cost-of-living and higher interest rates has come as a massive shock to many and budgeting for higher costs is not something borrowers have had to do for a very long time. No-one, especially lenders, wants to repossess homes. It’s expensive, horribly upsetting and disruptive. So, lenders will again be looking to do everything they can to avoid taking more homes into possession in the coming months.”

Published: 09 November 2023