Mortgages arrears fall by 2%

UK Finance has releaseed its latest mortgage arrears and possessions data for Quarter 1 (Q1) 2025, which shows that there were 90,140 homeowner mortgages in arrears fell by two per cent in Q1 2025 compared to the previous quarter.  

The number of Buy-to-let (BTL) mortgages in arrears also fell, down six per cent compared with the previous quarter, to 11,830.  

Whilst the number of properties being taken into possession increased, the overall numbers remain significantly lower than long-term averages.  

During the quarter, the number of homeowner and BTL mortgages in early arrears fell, which suggests that any rise in total arrears in the next quarter will be limited.  

Although possession numbers increased, they remain low compared to historic norms. A total of 2,030 homeowner and BTL mortgaged properties were repossessed in Q1 2025. For comparison purposes, this is 85 per cent lower than the 13,200 seen in Q1 2009.  

Possessions currently taking place predominantly relate to older mortgages, with more than two-thirds of possessions relating to mortgages arranged  at least a decade ago. 

Charles Roe, Director of Mortgages at UK Finance, said “The number of mortgages in arrears fell slightly compared to the previous quarter and the arrears numbers appear to now be on a downward trend. The recent cuts in interest rates and mortgage rates will also help households with their monthly bills.   

“This is a positive development, but we recognise that some households may still be struggling. Lenders are committed to supporting anyone facing financial difficulties and offer a range of tailored solutions. If you’re worried about your finances, please reach out to your lender as soon as possible to discuss the help available.”