UK homeowner mortgage repossessions jumped 39% in 2025 to 5,160 properties, according to figures from UK Finance. Despite the sharp annual rise, the number remains significantly below pre-financial crisis levels and broadly matches pre-pandemic figures.
The annual increase saw repossessions climb from 3,710 properties in 2024. In the final quarter of 2025 alone, lenders repossessed 1,210 homeowner properties – 17% more than the same period in 2024, though 13% lower than the previous quarter.
More than two-thirds of the repossessed properties relate to mortgages arranged at least a decade ago, the banking and finance industry body reported.
Arrears declining despite repossession rise
The number of homeowner mortgages in serious arrears actually fell during 2025. Some 80,490 mortgages were in arrears of 2.5% or more of the outstanding balance in the fourth quarter – down 4% from the previous quarter and 13% from a year earlier.
The most serious arrears cases, where homeowners owe more than 10% of their balance, dropped 9% year-on-year to 30,280 mortgages. Overall, just 0.92% of all homeowner mortgages were in arrears.
Buy-to-let landlords saw arrears fall even more sharply, down 25% year-on-year to 9,520 mortgages. However, 770 buy-to-let properties were repossessed in the fourth quarter, 10% more than the same period in 2024.
Historic context
The current repossession figures remain far below the peak of the financial crisis. In 2009, lenders repossessed 44,100 homeowner properties. At the crisis peak in mid-2009, 216,400 homeowner and buy-to-let mortgages were in arrears.
James Tatch, head of analytics at UK Finance, said: «As ever, the number of possessions remains low by historic standards and are broadly in line with pre-pandemic levels. 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.»
UK Finance emphasized that repossession is a «last resort» for lenders, who prioritize keeping customers in their homes. The organization confirmed that contacting a lender for support does not negatively impact credit scores.
Note: This article was created with Artificial Intelligence (AI).
