Uncertainty for mortgage holders remains as new mortgage stats from UK Finance and MOJ show mixed picture
15 May 2025
New Ministry of Justice statistics out today show a 31% increase in mortgage possession claims year on year in the first quarter of 2025.
Meanwhile today's figures from UK Finance reveal a 7% decrease year on year in homeowner mortgages in arrears.
StepChange notes that while the slight decline in mortgage arrears is encouraging, the increase in household bills and ongoing cost of living pressures remain a concern for those who are still struggling.
Adam Butler, Public Policy Manager at StepChange Debt Charity, said:
"This is an incredibly uncertain time for mortgage holders. While last week the Bank of England cut the base rate by 0.25%, which could provide some relief for borrowers, it's unlikely it'll have an immediate, meaningful impact for those who are struggling to keep up with mortgage payments. Although overall mortgage arrears remain low, the rise in possessions raises concerns that those already struggling may be especially at risk of falling into problem debt.
"Last year among our clients with a mortgage, we saw average mortgage arrears jump by a staggering 69% - from £6,054 in 2023 to £10,239 in 2024. At the same time, households are being hit with a fresh wave of cost increases, including higher energy bills, council tax, and water bills, further stretching already tight budgets.
"If you are worried about meeting your mortgage payments, don't hesitate to get in touch with your lender, who can offer support and forbearance options. If you're struggling with debt, know that you're not alone - a charity like StepChange is here to help with free and impartial advice."
Notes to Editors
- The UK Finance mortgage arrears statistics can be found here
- The MOJ Mortgage and landlord possession statistics can be found here