The number of homes repossessed between April and June this year jumped 47 per cent compared to the same period last year, new data shows.
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.’
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