UK Finance Arrears & Possession - reaction from Target Group

12 February 2026

Mel Spencer, growth director at Target Group, said:

“The data for Q4 2025 paints a cautiously optimistic picture for the mortgage market, with arrears continuing on the downward trajectory they have been on since early 2024. Overall rates are still at historically low levels. Owner occupiers and landlords proved remarkably resilient in Q4, despite lingering economic pressures. I am starting to think this trend might continue. Not only is effective lender support paying off, we can see the economy is improving. Retail spending growth more than doubled last month as shoppers held out for the January sales. The S&P purchasing manager index for services and manufacturing in January pointed to the fastest expansion of activity since August 2024. Nationwide, Halifax and Rightmove all reported a rebound in house prices at the start of the year. And consumer confidence rose for the second consecutive month in January, according to the research company GfK. This is just the latest sign of improved momentum. Added to that, Andrew Bailey has suggested there is scope for some further easing of the Bank rate soon.”