Spicerhaart Corporate Sales comments on UK Finance Arrears and Possessions

15 May 2025

David Miller, divisional director at Spicerhaart Corporate Sales, said:

“It is really positive to see mortgage arrears continue to fall across both residential and buy-to-let. While possessions do creep up – likely pointing to greater difficulties in higher arrears band – they still remain at historic lows and demonstrate the good work of lenders.

“In recent weeks and months, we’ve certainly seen positive changes with rate reductions across the market and the recent cut to the base rate, which is likely not to be the last. This will certainly help with the overall arrears picture moving forward – although we cannot underestimate the prospect of sticky inflation and potential pressures around the labour market.

“Of course, positive rate news is likely to offer little comfort for those deep in arrears who often face greater difficulty in refinancing and find themselves in a more vulnerable position. This is where early intervention from lenders remains absolutely critical, particularly through the likes of assisted sales schemes to ensure a positive outcome for all parties.

“On the ground, we are continuing to see the hard work of lenders in supporting clients and making sure that repossession is still the absolute last resort. Today’s figures only continue to demonstrate this. There’s no doubt that lenders must remain close to their clients – particularly those in a vulnerable situation. In addition, they need to stay close to their mortgage book to identify any potential risk and maximise the opportunity for achieving a good outcome.”