Homeowner arrears falls 1% and 6% for landlords
The number of mortgage holders in arrears was almost static in the second quarter of 2026, with 77,940 homeowner mortgages in arrears of 2.5% or more of the outstanding balance, 1% fewer than in the previous quarter, according to the latest figures from UK Finance.
Of those, 27,100 homeowner mortgages were in the lightest arrears band (representing between 2.5-5% of the outstanding balance), also 1% fewer than the previous quarter.
Arrears in the buy-to-let sector fell more sharply, however, down 6% from the previous quarter, with 8,390 buy-to-let mortgages in arrears of 2.5% or more.
Of those, 2,980 buy-to-let mortgages were in the lightest arrears band (representing between 2.5-5%), 7% down on the previous quarter.
Of all homeowner mortgages outstanding, those in arrears accounted for 0.89% compared to 0.44% of all outstanding buy-to-let (BTL) mortgages.
Possessions down YOY for first time in 20+ years
Possessions were also down, with homeowner possessions falling 8% on the previous quarter to 1,150 and the number of buy-to-let mortgaged properties down even more strongly, falling 22% to 630. Both were significantly down on long-term averages, while year-on-year they were down for the first time in more than 20 years.
More than two-thirds of possessions relate to mortgages arranged at least a decade ago.
James Tatch, head of analytics at UK Finance, said: “The number of mortgages in arrears are falling for both residential and buy-to-let mortgages and possessions are also down year-on-year for the first time since late 2003, and remain significantly below the long-term historic average.”