Phoebus Software comment on UK Finance Arrears and Possessions data

06 February 2025

Richard Pike, chief of sales and marketing at Phoebus Software, says:

"The latest figures from UK Finance show a decline in mortgage arrears in Q4 2024 across both homeowner and buy-to-let mortgages, which is encouraging and suggest that lenders’ support measures are having a positive impact. However, with cost-of-living pressures continuing to strain household finances, vulnerability and forbearance remain focus areas. Lenders should, where appropriate, be looking to automate customer engagement utilising advanced servicing software to concentrate on cases that require personal attention.

“As the economic landscape remains at best flat, maintaining control of arrears levels will be crucial. An interest rate cut this afternoon would provide much-needed relief for borrowers on variable rates. The effect of loosening of originations criteria by some lenders will take some time to flow through to portfolio performance."