What the latest figures show
UK Finance's figures for July to September 2026, reported by Mortgage Solutions on 12 November, show 76,080 homeowner mortgages in arrears of 2.5% or more of the balance, 2% fewer than the previous quarter. That is 0.87% of all homeowner mortgages.
Buy-to-let arrears fell 3% to 8,170, or 0.43% of buy-to-let loans. Homeowner possessions held steady at 1,150, well below the 2008–09 peak, but buy-to-let possessions rose 10% to 690.
Phoebus Software said this is the ninth quarter in a row that arrears have fallen, but warned the figures could hide pressure on household budgets.
Why it matters after the rate rise
These figures cover the period before the Bank of England raised Bank Rate from 3.75% to 4% on 5 November. If you are on a tracker or standard variable rate, or your fixed deal ends soon, your payments may go up. The earlier you plan for that, the more options you usually have.
The FCA expects lenders to support customers who are worried about their payments. That support can include a temporary switch to interest-only or a longer mortgage term, and asking for help early should not on its own affect your credit file. Changes like these can mean you pay more interest overall, so it is worth understanding the full cost first.
Landlords: watch your margins
Rising buy-to-let possessions are a reminder to check that rent still covers your mortgage, costs and tax, especially with property income tax rates due to rise from April 2027. If a fixed rate ends in the next six months, start reviewing your options now. Most buy-to-let mortgages are not regulated by the FCA.
Quick tips
- Know your dates: note when your current deal ends and any early repayment charges.
- Do a budget check: list your income and outgoings, then test what a higher payment would mean.
- Talk early: if payments feel tight, contact your lender before you miss one.
- Get free debt help: MoneyHelper offers free, impartial guidance if you are struggling.
- Protect your income: check whether you have cover in place if illness or job loss stops your pay.
How OMB can help
Our CeMAP-qualified advisers search the whole market and look at your full picture, including past arrears. See how we helped a client remortgage after past arrears in Glasgow, read our free protection insurance guide, or book a call with an adviser.
Sources
- Mortgage Solutions, 12 November 2026: Mortgage arrears continue to fall (UK Finance Q3 2026 data)
- Bank of England: Bank Rate
- FCA: help for mortgage borrowers struggling with payments
- MoneyHelper: Problems paying your mortgage (April 2026)
To talk it through, contact us or start your enquiry.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.