Adam Oldfield, chief revenue officer at Phoebus, says:

“This is the most encouraging news that efforts to curb inflation are starting to have a positive effect. Especially after so many months of rising inflation.

“News today of a drop in inflation may lead people to think that the Bank of England is achieving its goal, which will mean an end to base rate rises.

“However, that may not be the case when underlying inflation remains high.

“Considering the fact that Consumer Duty is just around the corner lenders and brokers will need to be doing everything possible for those clients that may be starting to struggle.

“Even though inflation has come down we are still dealing with rising costs and the highest mortgage rates in decades.

“One of the questions is, are the legacy systems many are using even able to identify the most exposed borrowers on their books? If not, how compliant can they be to the new rules?”