UK Mortgage Arrears and Repossessions: The Latest Data

The latest UK Finance figures, Q1 2026

UK Finance publishes the industry's own quarterly arrears and possessions data, and its most recent release, covering the first quarter of 2026 and published in May 2026, is the primary source for everything in this article unless stated otherwise.

On the homeowner side, 79,110 mortgages were in arrears of 2.5% or more of the outstanding balance, 0.91% of all homeowner mortgages, down 2% on the previous quarter. Within that, the lightest arrears band, 2.5% to 5% of balance, accounted for 27,290 mortgages, also down 2% quarter on quarter.

On the buy-to-let side, 8,960 mortgages were in arrears of 2.5% or more, 0.47% of all buy-to-let mortgages, down 6% on the quarter and down 24% on the year. The lightest buy-to-let band, 2.5% to 5%, accounted for 3,220 mortgages, down 7% quarter on quarter. Buy-to-let arrears have now been falling for some time, a genuinely different trajectory to the possession figures below.

Possessions moved the other way, modestly. 1,250 homeowner properties were taken into possession in the quarter, up 3%, or 38 properties, on the previous quarter. UK Finance is explicit that this remains significantly lower than long-term averages, and notes that more than two-thirds of homeowner possessions relate to mortgages that were originally arranged ten or more years ago, pointing to legacy cases working through the system rather than a fresh wave of distress. Buy-to-let possessions stood at 810, up 5% on the quarter and flat on the year.

It helps to be clear about what "arrears of 2.5% or more of the balance" actually means in practice: it is UK Finance's standard threshold for counting a mortgage as being in meaningful difficulty, roughly equivalent to missing one to two months of payments depending on the size of the mortgage, rather than someone being a single payment late. That is why the arrears figures above are a genuinely useful proxy for financial strain, while still describing a small minority of the roughly 8.7 million homeowner mortgages and 1.9 million buy-to-let mortgages outstanding in the UK.

Still far below the 2009 crisis peak

Context matters here. At the height of the financial crisis, in the second quarter of 2009, combined homeowner and buy-to-let arrears reached 216,400. Today's combined figure of roughly 88,000, adding the 79,110 homeowner and 8,960 buy-to-let totals above, sits at well under half that peak. The current data describes a market under some pressure, not one approaching the conditions of 2008 to 2009.

The direction of travel also matters as much as the level. Buy-to-let arrears have fallen for multiple consecutive quarters, a sign that landlords who came under pressure from higher interest rates in 2023 and 2024 have largely worked through, refinanced, or sold their way out of difficulty. Homeowner possessions, by contrast, ticked up slightly on the quarter, which UK Finance itself attributes mainly to older, legacy cases finally reaching the end of a lengthy court and forbearance process, rather than to a fresh wave of new arrears feeding through.

The regional gap nobody publishes, and the closest available substitute

UK Finance does not publish a regional or nation-level breakdown of its arrears and possessions figures. That is a genuine, confirmed gap in the public data, and any claim of an official regional breakdown from UK Finance itself should be treated as incorrect.

The closest available substitute comes from an unexpected place: Section 8 of the Scottish Government's Scottish Housing Market Review for the second quarter of 2026, published in July 2026. Despite appearing in a Scotland-focused publication, the figures it reports are UK-wide, on an FCA regulatory basis rather than UK Finance's own methodology, and should not be read as Scotland-specific data. With that important distinction noted, the review shows UK-wide regulated mortgage accounts in arrears falling from a post-pandemic peak of 148,943 in the second quarter of 2024 to 129,887 at Q1 2026. The share of balances in arrears above 1.5% has fallen to 1.0% at Q1 2026, down from a recent peak of 1.2%, though still above the 2022 low of 0.7%. Buy-to-let arrears at the 1.5% threshold, drawing on UK Finance data cited within the same report, stood at 12,120 at Q1 2026, down 5.4% on the quarter for a ninth consecutive quarterly fall, and down 38% from the Q4 2023 peak of 19,570. New possessions on an FCA basis were 1,214 in Q1 2026, up 5.4% on the year, a figure that differs slightly from UK Finance's own 1,250 homeowner possessions number because the two use different sources and definitions; both should be cited separately rather than treated as the same measurement.

Reading this data responsibly

It is worth stating plainly: behind every figure in this article is a household managing real financial pressure, not simply an entry in a spreadsheet. UK Finance's data is aggregated and anonymised at a national level, and it says nothing about any individual's circumstances or intentions. Anyone genuinely behind on mortgage payments has options worth exploring first, including lender forbearance arrangements, the Breathing Space scheme, Support for Mortgage Interest, and free, independent debt advice. Our own guide to mortgage arrears and what to do in the UK sets these out in more detail, and our guide on stopping a repossession covers the full range of options, from lender negotiation to selling before a court date, alongside the realistic timeline for each.

What this means for off-market buyers and lenders

National arrears and possession figures are a useful signal of sector-wide conditions, not a targeting list. They tell you that mortgage distress currently sits well below crisis levels but has not disappeared, and that buy-to-let arrears are easing faster than homeowner possessions are falling. For anyone trying to understand distressed and repossessed property as a category, our guide on the difference between distressed and repossessed property explains the practical distinction and the different timelines involved, which matters more to a genuine buying decision than the national totals on their own.

It is also worth knowing how fresh this data is likely to be when you read it. UK Finance publishes arrears and possessions figures quarterly, roughly six to seven weeks after each quarter ends, so a Q1 release lands in May and the data itself is never more than a few months old at most. That cadence makes it a reasonable barometer of sector-wide conditions to check each quarter, even though, as covered above, it will never substitute for genuinely local or individual-level information.

Common questions

How many UK homeowners are currently behind on their mortgage?

UK Finance recorded 79,110 homeowner mortgages in arrears of 2.5% or more of the outstanding balance at Q1 2026, 0.91% of all homeowner mortgages, down 2% on the previous quarter. A further 8,960 buy-to-let mortgages were in arrears of 2.5% or more, down 6% on the quarter and 24% on the year.

Is the UK close to 2008 to 2009 levels of mortgage distress?

No. At the 2009 crisis peak, combined homeowner and buy-to-let arrears reached 216,400. Current combined arrears of around 88,000 remain well below that level, even though possessions ticked up slightly in the latest quarter.

Where can I find a regional breakdown of UK mortgage arrears?

UK Finance does not publish one. The closest available substitute is UK-wide, FCA-basis arrears and possessions data reported inside the Scottish Government's Scottish Housing Market Review, which covers the whole UK rather than Scotland specifically, and uses a different methodology to UK Finance's own figures.

Is arrears data a reliable way to find distressed sellers?

It is a sector-wide signal of conditions, not a list of individuals. UK Finance's figures are aggregated and anonymised, and anyone behind on a mortgage should be treated as a person navigating real financial pressure, with options such as lender forbearance, Breathing Space and free debt advice worth exploring before any sale.

This is general information, not financial or legal advice. Figures are drawn from UK Finance and the Scottish Government, each attributed above; always check the primary source before relying on a figure, and seek independent debt advice for any individual financial situation.