The number of UK mortgages in arrears fell in the third quarter of 2025, while possessions remained low by historical standards, according to the latest figures from UK Finance.
Homeowner mortgage arrears were down 4% compared to the previous quarter, with 84,100 loans in arrears of 2.5% or more of the outstanding balance.
Within this total, 28,940 homeowner mortgages were in the lightest arrears band (between 2.5% and 5% of the balance), 3% fewer than in Q2.
Buy-to-let arrears also declined, falling by 8% to 10,420.
Of these, 3,750 were in the lightest arrears band, down 9% on the previous quarter.
Overall, arrears remain low, representing 0.97% of homeowner mortgages and 0.54% of buy-to-let mortgages.
For comparison, at the peak of the 2009 financial crisis, there were more than 209,000 mortgages in arrears.
The number of possessions rose slightly but remains well below long-term averages.
A total of 1,390 homeowner properties were taken into possession in Q3 2025, up 4% from Q2, while 900 buy-to-let properties were repossessed, a 14% increase.
Most current possessions relate to mortgages taken out more than a decade ago.
UK Finance emphasised that repossession remains a last resort, with lenders continuing to offer tailored support to customers struggling with repayments.
Charles Roe, director of mortgages at UK Finance, said: “The total number of mortgages in arrears continued to fall in Q3, as they have done since Q1 2024, which is a positive sign.
“While possessions have risen slightly, they predominantly relate to mortgages arranged more than ten years ago and remain low by historic standards and broadly in line with pre-pandemic levels.
“Lenders remain committed to supporting customers who may be struggling.
“If you are worried about your mortgage payments, please contact your lender as soon as possible to discuss the tailored help available.”
