UK mortgage arrears fall in Q2 2026

UK Finance has released its latest data on mortgage arrears and possessions for the second quarter of 2026, highlighting continued lender support for customers facing financial difficulty. The report indicates that the number of homeowner mortgages in arrears of 2.5% or more of the outstanding balance stood at 77,940 during this period.

This figure represents a 1% decrease compared to the previous quarter, suggesting a slight improvement in the financial stability of borrowers across the UK property market. The data serves as a key indicator of how mortgage lenders are managing risk and supporting homeowners through economic challenges.

The release of these statistics provides essential insight into the current state of mortgage lending and borrower performance in the UK. As lenders continue to offer support, the reduction in significant arrears cases points to a stabilising trend in the residential finance sector for Q2 2026.