8:01 AM, 15th May 2026, 1 hour ago
UK Finance data reveals that 8,960 buy to let mortgages were in arrears in the first quarter, a fall of 6% on the previous quarter and 24% lower than a year ago.
Arrears now account for 0.47% of all BTL mortgages.
Possessions moved the other way with 810 BTL mortgaged properties were taken into possession during the quarter, up 5% on Q4 2025 but unchanged year-on-year.
James Tatch, the head of analytics at UK Finance, said: “The number of mortgages in arrears continues to fall for both residential and buy to let mortgages.
“While possessions are up very slightly on the previous quarter, they remain low by historic standards.”
Homeowner mortgage arrears
Among homeowners, 79,110 mortgages were in arrears of at least 2.5% of the outstanding balance. That was down 2% on the previous quarter.
The homeowner arrears rate stood at 0.91%.
Possession numbers rose slightly for homeowners, too.
UK Finance said 1,250 homeowner mortgaged properties were taken into possession in Q1 2026, 38 more than in the previous quarter, a rise of 3%.
The comparison with the last major arrears spike was in Q2 2009, during the global financial crisis, when the number of homeowner and BTL mortgages in arrears reached 216,400.
More than two-thirds of current possessions relate to mortgages arranged at least a decade ago.
Property sector reaction to the UK Finance news
Mary-Lou Press, NAEA Propertymark President, said: “While it is positive news to hear mortgage arrears sit lower during the first quarter of this year than they did within the quarter directly previous, it is, however, important to acknowledge future affordability constraints, especially concerning current global unrest.
“The current rate of inflation remains a key concern, and the impact this may have on the base rate remains to fully play out yet.”
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