Data shows Q3 fall in mortgage arrears

November 24, 2025 by Brendan O'Neill

Surveys and Statistics

The latest data to be released shows that arrears for both buy-to-let and purchase mortgages fell in the third quarter of this year; making for encouraging news.

This data comes from UK Finance and it shows a decline of 4% in the number of people who have purchase mortgage arrears of 2.5% or higher. That is in comparison with the second quarter of the year. It leaves a total of 84,100 people with purchase arrears of at least 2.5% of their outstanding balance. Another interesting figure in the UK Finance data is that 28,940 of those with mortgages are in the lowest band when it comes to arrears. This is a drop of 3% compared with the previous quarter.

When it comes to buy-to-let mortgages, the story is a similar one. Here, the total arrears fell by 8% during the third quarter. That left 10,420 mortgage holders with arrears. In terms of the bands, 3,750 of them are in the lowest one. That is a fall of 9%.

The overall level of arrears is low, both for purchase and buy-to-let mortgages. For the former, it stands at 0.97%, while for the latter it is 0.54%.

UK Finance director of mortgages is Charles Roe. Speaking to Mortgage Introducer, he said:

“Lenders remain committed to supporting customers who may be struggling. If you are worried about your mortgage payments, please contact your lender as soon as possible to discuss the tailored help available.”

Advisors with the CeMAP qualification can help with that process, by taking on the role of middlemen.