The number of buy to let (BTL) mortgages in arrears fell 9% in the final three months of 2025 compared with the previous quarter.
The number of BTL mortgages in arrears fell to 9,520.
Within this total, 3,480 BTL mortgages were in the lightest arrears band, seven per cent fewer than in the previous quarter.
Amongst owner occupiers, the number of mortgages in arrears fell 4% compared to the previous quarter.
For comparison purposes, the number of homeowner and BTL mortgages in arrears in Q2 2009, the peak in arrears numbers during the global financial crisis, was 216,400.
Some 770 BTL mortgaged properties were taken into possession in the final quarter of 2025, some 14% fewer than in the previous quarter. Overall, possessions remain significantly below long-term averages.
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.
James Tatch, Head of Analytics at UK Finance, says: “The number of mortgages in arrears continued to fall in Q4 … We have also seen a decline in possessions in Q4 due to lenders’ commitment to keep people in their homes over the Christmas period.
“As ever, the number of possessions remain low by historic standards and are broadly in line with pre-pandemic levels.”
This article is taken from Landlord Today