Phoebus Software comments on UK Finance Arrears and Possessions figures for Q1

Adam Oldfield, chief revenue officer at Phoebus Software comments on UK Finance Arrears and Possessions figures for Q1.

“Having been in a low interest environment for such a long time the recent increases in interest rates have put many borrowers into a position they have never experienced before.

“The figures from UK Finance this morning bear out the fact that increasing interest rates coupled with the rising cost of living is taking its toll. 

“Unfortunately, with around 370,000 borrowers coming off fixed rate deals between April and June (ONS), the likelihood is that this trend will continue and is almost certainly going to get worse. 

“This is especially true if, as many expect, the Bank of England continues to put the base rate up.

“Once again there will be a great responsibility for lenders to identify borrowers that may be getting into difficulty and manage the situation with care. 

“With Consumer Duty rules coming into force at the end of July that responsibility becomes more onerous, and every lender will need to ensure they have all their systems aligned to ensure the best outcomes for their borrowers.”

Kindly shared by Phoebus Software

Main article photo courtesy of Pixabay