The number of homeowner mortgages in arrears has fallen for the tenth consecutive quarter, according to the latest UK Finance figures.

The trade body said there were 76,080 such arrears in the period, down 2% on the quarter and 10% year-on-year.

Mortgages in arrears made up 0.87% of all homeowner mortgages and 0.43% of all buy-to-let mortgages in the third quarter of 2026.

The number of buy-to-let arrears fell 22% year-on-year and 3% on the quarter, to 8,170.

Whilst the number of buy-to-let mortgages in the lightest arrears band increased modestly compared with the previous quarter, it remained 18% lower than a year earlier, UK Finance found.

Aside from this, numbers of arrears in all other bands fell in both the homeowner and buy-to-let sectors.

Repossession numbers rose 3% compared with Q2, from 1,780 to 1,840.

This was 20% down on the same quarter in 2025, and the second consecutive year-on-year fall.

Within the total, homeowner repossessions were down 17% year-on-year and unchanged on the previous quarter. UK Finance said homeowner repossessions remained at their lowest level since Q4 2024.

Whilst buy-to-let repossessions increased 10% on the quarter to 690, they remained 23% below a year earlier.

Anyone worried about their mortgage payments should reach out to their lender at the earliest opportunity to discuss the options available for their circumstances.

UK Finance head of analytics James Tatch said: “The latest arrears and possessions data shows that borrowers are continuing to manage their mortgage payments despite rising cost pressures.

“With homeowner arrears falling for a tenth consecutive quarter, and possessions well below historic highs, the overall picture is one of a resilient mortgage market, with the vast majority of customers continuing to make their repayments on time.

“Despite the positive news on falling arrears, we know customers are currently dealing with a rising cost of living, as well as the impact the war in the Middle East is having on interest rates.

“Mortgage lenders remain committed to supporting customers who are facing difficulties. Anyone worried about keeping up with their repayments should contact their lender as soon as possible to discuss what tailored support is available to them.”

In Q2 there were 77,940 homeowner mortgages in arrears by 2.5% or more of the outstanding balance in Q2, down 1% from Q1, UK Finance previously found.