Home arrears are falling

New figures from UK Finance show that mortgage arrears are falling. In fact, the number of people behind on their mortgage dropped by 2% in the first few months of 2025.

That means fewer households are missing payments. And while there’s been a small rise in repossessions, they’re still much lower than during the financial crisis.

So, why are things looking a little better? And what can you do if you’re still finding it hard to keep up?

Why are fewer people falling behind?

There are a few different reasons that might explain why fewer homeowners are falling into arrears right now, including:

More support from lenders

Since the cost of living started rising, mortgage lenders have stepped up their efforts to help struggling homeowners. That means more flexible repayment options, like switching to interest-only payments or temporarily reducing your monthly payments. Many lenders are also reaching out to borrowers sooner when they spot signs of difficulty, helping to stop problems before they get worse.

Interest rates have stopped rising

After months of rate hikes, interest rates have finally levelled off. For some homeowners, this has meant fewer payment shocks when renewing fixed-rate deals and a bit more breathing room to manage their household budgets.

People are getting help earlier

More people are reaching out for support before they fall behind. Whether it’s talking to their lender or getting free money advice, acting early is one of the best ways to avoid arrears. Lenders have also made it clearer that asking for help doesn’t affect their long-term lendability, which has encouraged more people to speak up sooner.

Tighter budgets and smarter money habits

It’s no secret that families across the UK are having to cut back. But while that’s tough, it’s also meant more people are keeping a close eye on their spending. Budgeting tools, benefit calculators and money advice services have helped many households take control of their finances and prioritise essential bills like their mortgage.

Most repossessions happening now are on older mortgages, where people have been struggling for years. Repossession is always a last resort and only happens when all other options have been explored.

What if I’m still struggling?

Don’t panic. You’re not alone – and there’s support available.

Talk to your lender

It might feel scary, but getting in touch early really helps. Lenders can look at ways to reduce your monthly payments, like switching to interest-only or extending your mortgage term.

Get free, expert advice

We know how overwhelming money worries can be. If you’re behind on payments or worried you will be, we’re here to help.

See if you can get extra support

If you’re on a low income or getting certain benefits, you might be able to get help through the government’s Support for Mortgage Interest (SMI) loan. You could also get help with energy bills, council tax and more.

Take control of your budget

Even if things feel tight, a simple budget can make a big difference. Use our free budget planner to see where your money’s going and spot ways to save.