In the first quarter of 2025, the number of buy to let mortgages in arrears fell 6% compared with the previous quarter, to 11,830.
There were also 90,140 homeowner mortgages in arrears. This was a 2% decrease compared with Q4 2024.
The overall proportion of mortgages in arrears remains low, at 1.03 per cent of homeowner mortgages and 0.61 per cent of BTL mortgages.
For comparison purposes, the number of homeowner and BTL mortgages in arrears in Q1 2009, the peak in arrears numbers during the global financial crisis, was 209,600.
During the quarter, the number of homeowner and BTL mortgages in early arrears fell, which suggests that any rise in total arrears in the next quarter will be limited.
The data comes from UK Finance, the lenders’ trade body.
Although possessions numbers increased, they remain low compared to historic norms. A total of 2,030 homeowner and BTL mortgaged properties were repossessed in Q1 2025. For comparison purposes, this is 85% lower than the 13,200 seen in Q1 2009, at the peak of the global financial crisis.
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, UK Finance says lenders will always seek to ensure customers remain in their homes and possession is only ever a last resort after other options have been explored with the customer.
Toby Leek, NAEA Propertymark President, says: “It’s extremely positive to see to see mortgage arrears drop to their lowest level since 2009. There has been much progress within the sector to help ensure the overall lending criteria is more robust and offers consumers a higher degree of safety regarding their affordability.
“However, it is concerning to see repossessions witness an increase within the first quarter of 2025, as it demonstrates there is still an aftershock regarding the recent surge in the cost of living and support available to those who may need genuine help in the short to medium term.”
