Spicerhaart Corporate Sales comments on UK Finance Arrears & Possessions data

13 November 2025

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

“Against the current backdrop, we should be really encouraged to see yet another fall in arrears cases across both residential and BTL. Lenders continue to dispel this myth that repossession is the first port of call. Instead, they put the work in to identify arrears cases early and provide personalised support.

“There’s no question though that lenders will need to keep that laser focus on arrears and good forbearance moving forward, particularly as unemployment jumps to its highest level since 2020. The news around inflation and a potential peak is starting to sound more positive, as is the potential for a base rate cut in December, which will help new borrowers and those set to remortgage. We cannot overlook the Budget though and what impact this could have – particularly if an income tax rise is on the agenda. No matter what, we must stay close to our clients and adopt a proactive approach to understanding value and identifying risk across mortgage books.

“While the data does show an increase in possessions, which is most likely involves those in the highest arrears band, we must note that it is still well below the long-term average. Lenders continue to stay close and implement proactive exit strategies – such as assisted voluntary sale – to ensure all parties receive a positive outcome. This will continue to play a significant role.”