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 homeowner mortgages in arrears fell for the 10th consecutive quarter in Q3 2026 to 76,080, according to UK Finance’s arrears and possessions data for Q3 2026.
This marked a 10% decline year-on-year and a 2% decline quarter-on-quarter.
The number of buy-to-let (BTL) arrears was also down 22% year-on-year and 3% on the quarter.
Mortgages in arrears made up 0.87% of all homeowner mortgages and 0.43% of all buy-to-let mortgages in Q3.
Although possession numbers rose slightly compared with Q2, from 1,780 to 1,840, this was 20% down on the same quarter in 2025.
This was the second consecutive year-on-year fall, with numbers significantly lower than historical peaks.
Within the total, homeowner possessions were down 17% year-on-year and unchanged on the quarter, remaining at their lowest level since Q4 2024.
Whilst buy-to-let possessions increased 10% on the quarter to 690, they remained 23% below a year earlier.
James Tatch, head of analytics at UK Finance, 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.”
