New figures from the Ministry of Justice show mortgage possession claims increased by 22% in the second quarter of 2025 compared with the same period in 2024.
The rise comes despite UK Finance reporting a 3% fall in the number of mortgages in arrears of more than 2.5% of the outstanding balance over the same period.
For StepChange clients in mortgage arrears, the average arrears in the year to date stand at £11,531 – up 12% from £10,239 in 2024, and 90% from £6,054 in 2023.
Adam Butler, public policy manager at StepChange, said: “Whilst interest rates are coming down, along with mortgage arrears, many are still struggling.
“With possessions rising, we are concerned that those in debt could be pushed further into crisis.
“If you are worried about managing your mortgage payments, do not hesitate to contact your lender who has a regulatory responsibility to help – which may look like forbearance or wider support.
“If you are struggling with debts or your finances more generally, a charity like StepChange is on hand to guide you through your journey with free advice.”
