UK Finance: Mortgage arrears and possessions - Q2 2026

Key Information  

• There were 77,940 homeowner mortgages in arrears of 2.5 per cent or more of the outstanding balance in the second quarter of 2026, one per cent fewer than in the previous quarter.  

• Within the total, there were 27,100 homeowner mortgages in the lightest arrears band (representing between 2.5 and 5 per cent of the outstanding balance). This was one per cent fewer than in the previous quarter.  

• There were 8,390 buy-to-let mortgages in arrears of 2.5 per cent or more of the outstanding balance in the second quarter of 2026, six per cent fewer than in the previous quarter.  

• Within the total, there were 2,980 buy-to-let mortgages in the lightest arrears band (representing between 2.5 and 5 per cent of the outstanding balance). This was seven per cent fewer than in the previous quarter.  

• Mortgages in arrears accounted for 0.89 per cent of all homeowner mortgages outstanding, and 0.44 per cent of all buy-to-let (BTL) mortgages outstanding in the second quarter of 2026.  

• 1,150 homeowner mortgaged properties were taken into possession in the second quarter of 2026, eight per cent fewer than in the previous quarter. This remains significantly below the long-term average.  

• 630 buy-to-let mortgaged properties were taken into possession in the second quarter of 2026, 22 per cent fewer than in the previous quarter. 

Possessions   

Possession numbers decreased in Q2 2026 compared to the previous quarter and are significantly below the long-term average. A total of 1,150 homeowner mortgaged properties were taken into possession in Q2 2026, eight per cent less than in the previous quarter and 14 per cent less than one year previously.   

630 BTL mortgaged properties were taken into possession, 22 per cent fewer than in the previous quarter and 20 per cent less than one year previously. Overall, possessions remain significantly below long-term averages. 

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. For customers who have been struggling with payments for a long time, repossession enables them to exit their mortgage while retaining as much of their home’s equity as possible. However, lenders will always seek to ensure customers remain in their homes, with possession only ever taking place as a last resort once all other options have been explored with the customer. 

Lender Support for Borrowers   

Mortgage lenders continue to offer support to help customers manage their payments, even as financial circumstances change. Anyone worried about their mortgage payments should reach out to their lender at the earliest opportunity to discuss the options available for their circumstances. Contacting your lender to find out what support is available will not impact your credit score. 

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."  

"If you are concerned about meeting repayments, the first port of call is always to speak to your lender, who stand ready to offer tailored help available."