
Mortgage arrears fall for eighth consecutive quarter – UK Finance
77,940 homeowner mortgages were in arrears of 2.5% or more of the outstanding balance in Q2 2026, 1% fewer than the previous quarter.

77,940 homeowner mortgages were in arrears of 2.5% or more of the outstanding balance in Q2 2026, 1% fewer than the previous quarter.

The firm analysed government landlord possession data covering the four quarters between Q2 2025 and Q1 2026, finding that 28,610 possession claims were issued during the period.

Inventory Base said that landlords may have been waiting for legislative clarity before deciding whether to issue possession claims.

Overall possession claims have fallen and repossessions are rising, according to figures released by the Ministry of Justice, analysed by LandlordBuyer.

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.

Ministers said courts will be ready for the Renters’ Rights Bill, but the NRLA said this is not the case.

In Q4 2024, buy-to-let (BTL) mortgages saw a decrease in arrears by 3%, totalling 12,610.

The survey revealed that nearly 40% of landlords found the expanded Section 8 possession grounds helpful.

Mortgage possession claims rose from 4,188 to 6,525, a 56% increase.
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