The number of mortgaged homeowners having their home repossessed jumped by nearly a fifth in the first quarter of this year, compared with the previous three months, according to figures from a banking and finance industry body.
Some 1,220 homeowner repossessions were recorded by UK Finance in the first quarter of this year, marking an 18% rise compared with the last three months of 2024.
There were also 810 buy-to-let home repossessions in the first quarter of this year, marking a 16% rise on the previous quarter.
UK Finance said that, although repossession numbers increased, they remain low compared with the longer-term.
It said that the 2,030 homeowner and buy-to-let repossessions in the first quarter of 2025 was significantly lower than the 13,200 repossessions seen in the first quarter of 2009, during the global financial crisis.
Current repossessions predominantly relate to older mortgages, the report said, with more than two-thirds of repossessions relating to mortgages arranged at least a decade ago.
UK Finance said that lenders will always seek to ensure customers remain in their homes and repossession is only ever a last resort after other options have been explored with the customer.
The figures also showed that in the first quarter of 2025, there were 90,140 homeowner mortgages in arrears. This was a 2% decrease compared with the fourth quarter of 2024.
The number of buy-to-let mortgages in arrears fell by 6% compared with the previous quarter, to 11,830.
UK Finance said the number of homeowner and buy-to-let mortgages in early arrears has fallen, indicating that any rise in total arrears in the next quarter would be limited.
It said anyone who is worried about their mortgage payments should reach out to their lender at the earliest opportunity to discuss the options available.
Some mortgage rates have been drifting downwards in recent weeks, amid expectations over Bank of England base rate cuts. Several lenders have also recently changed their affordability assessments to make it easier for some borrowers to access mortgage finance.
Charles Roe, director of mortgages at UK Finance, said: “The number of mortgages in arrears fell slightly compared to the previous quarter and the arrears numbers appear to now be on a downward trend. The recent cuts in interest rates and mortgage rates will also help households with their monthly bills.
“This is a positive development, but we recognise that some households may still be struggling. Lenders are committed to supporting anyone facing financial difficulties and offer a range of tailored solutions. If you’re worried about your finances, please reach out to your lender as soon as possible to discuss the help available.”
