Buy-to-let mortgage arrears fell in the first quarter of 2026, although possession activity moved slightly higher.
UK Finance figures show that 8,960 buy-to-let mortgages were in arrears in Q1, down 6% from the previous quarter and 24% from a year earlier. Arrears now represent 0.47% of all buy-to-let mortgages.
However, 810 buy-to-let mortgage properties were taken into possession during the quarter. That was 5% higher than in Q4 2025, but unchanged compared with the same period last year.
The picture was similar among homeowners. There were 79,110 homeowner mortgages in arrears of at least 2.5% of the outstanding balance in Q1 2026, a 2% fall on the previous quarter. The homeowner’s arrears rate stood at 0.91%.
Possessions rose slightly in the homeowner market, with 1,250 mortgaged properties taken into possession. That was 38 more than in the previous quarter, equivalent to a 3% rise.
The latest figures remain well below the peak seen after the global financial crisis. In Q2 2009, homeowner and buy-to-let arrears reached 216,400.
UK Finance said more than two-thirds of current possessions relate to mortgages arranged at least 10 years ago, suggesting much of the current possession activity is linked to older borrowing rather than recent lending.
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