Home repossessions jump 47% in a year as more households struggle with higher mortgage rates
Home repossessions were also up 10 per cent compared to the first three months of the year, says UK Finance.
The figures show 1,340 homeowner-mortgaged properties were repossessed in the second quarter of 2025 as borrowers coming off lower mortgage rates onto higher ones struggle to stay on top of payments.
According to the Bank of England, the rate charged on outstanding mortgages rose to 3.88 per cent in June, up from 2.93 per cent in June 2024 and 2.17 per cent in June 2020.
In addition, claims for possessions – the start of the process for lenders looking to repossess a property for mortgage arrears – increased 22 per cent to 6,537 and warrants for possession rose 28 per cent to 3,787, data released by the Ministry of Justice shows.
Rachel Springall of Moneyfacts Compare, says: 'It is worrying to see a growing number of borrowers can no longer keep up with mortgage repayments and are having properties repossessed.'
Home repossessions have jumped year on year by 47 per cent data from UK Finance shows
Meanwhile Landlord repossessions rose by 11 per cent year-on-year, in a 'stark warning to landlords.'
Landlord repossessions fell 2 per cent compared with the first quarter of 2025 with 790 buy-to-let mortgaged properties repossessed in the second quarter of 2025.
Rachel adds: 'Landlords with a portfolio may have to sell up in the coming months if they are finding their margins squeezed.'
Though the number of repossessions rose since the same period last year, overall repossession numbers remain 'significantly lower than long-term averages' according to UK Finance.
It comes as the number of homeowner mortgages in arrears fell by 3 per cent between April and June this year.
There were 87,380 homeowner mortgages in arrears of 2.5 per cent or more in the second quarter of the year, data from industry body UK Finance shows.
The number of buy-to-let mortgage arrears also dropped, falling 5 per cent to 11,270.
Though the number of homeowners and landlords in arrears fell, Rachel says: 'The incentive to refinance is critical, as there is a difference of more than 2 per cent to escape a revert rate, compared to 1 per cent back in August 2023, based on the average two-year fixed rate versus the Moneyfacts average Standard Variable Rate.'
How to find a new mortgage
Borrowers who need a mortgage because their current fixed rate deal is ending, or they are buying a home, should explore their options as soon as possible.
Buy-to-let landlords should also act as soon as they can.
Quick mortgage finder links with This is Money's partner L&C
> Mortgage rates calculator
> Find the right mortgage for you
What if I need to remortgage?
Borrowers should compare rates, speak to a mortgage broker and be prepared to act.
Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it.
Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying expensive arrangement fees.
Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone.
What if I am buying a home?
Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be.
Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people's borrowing ability and buying power.
What about buy-to-let landlords
Buy-to-let landlords with interest-only mortgages will see a greater jump in monthly costs than homeowners on residential mortgages.
This makes remortgaging in plenty of time essential and our partner L&C can help with buy-to-let mortgages too.
How to compare mortgage costs
The best way to compare mortgage costs and find the right deal for you is to speak to a broker.
This is Money has a long-standing partnership with fee-free broker L&C, to provide you with fee-free expert mortgage advice.
Interested in seeing today's best mortgage rates? Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs.
If you're ready to find your next mortgage, why not use L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
> Find your best mortgage deal with This is Money and L&C
Be aware that rates can change quickly, however, and so if you need a mortgage or want to compare rates, speak to L&C as soon as possible, so they can help you find the right mortgage for you.
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