The trade body found that there were 79,110 homeowner mortgages in arrears of 2.5% or more of the outstanding balance in Q1. This was a 2% decrease compared with Q4 2025.

The number of buy-to-let mortgages in arrears also fell, down 6% compared with the previous quarter and down almost a quarter (24%) year-on-year, to 8,960.

The overall proportion of mortgages in arrears remains low, at 0.91% of homeowner mortgages and 0.47% of buy-to-let mortgages.

For comparison purposes, the number of homeowner and buy-to-let mortgages in arrears in Q2 2009, the peak in arrears numbers during the global financial crisis, was 216,400.

Possession numbers increased slightly in Q1 2026 compared to the previous quarter, but remain low compared to historic norms.

A total of 1,250 homeowner mortgaged properties were taken into possession in Q1 2026, 38 (or 3%) more than in the previous quarter.

For buy-to-let, 810 mortgaged properties were taken into possession, 5% greater than in the previous quarter and flat year-on-year. 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.

UK Finance head of analytics James Tatch said: “The number of mortgages in arrears continues to fall for both residential and buy-to-let mortgages. While possessions are up very slightly on the previous quarter, they remain low by historic standards.

“Lenders stand ready to support customers who may be worried about meeting their repayments. We would always recommend customers contact their lender as soon as possible to discuss the tailored help available.”