The latest Centrix Credit Indicator (April 2026) shows household credit conditions continuing to improve, with overall arrears falling again and mortgage stress easing further. While the broader trend is moving in a positive direction, pressure remains more concentrated across unsecured lending, particularly personal loans and BNPL.
In our April market report, consumer arrears sat at 12.09%, with 473,000 people behind on payments.
This month, arrears have fallen further to 11.72%, with the number of consumers behind on payments declining to 459,000, down 14,000 from the previous month. Arrears are now 7.1% lower than a year ago, marking the lowest level since September 2023. However, there are still 95,000 consumers more than 90 days behind on payments, showing deeper financial stress remains for some households.
Mortgage Arrears Continue to Ease
Mortgage arrears improved again in March, falling from 1.42% in the previous report to 1.39%. The number of mortgage accounts past due also declined slightly from 22,700 to 22,500.
Mortgage arrears are now 12% lower year on year, supported by lower interest rates easing repayment pressure for borrowers. Seasonally adjusted mortgage delinquencies also continued to improve, with both short term and 90+ day arrears tracking lower than a year ago.
Credit Card Arrears Tick Higher
Credit card arrears increased slightly this month, rising from 4.0% to 4.2%. Despite the increase, arrears remain 10% lower than a year ago, showing that overall performance remains stronger than it was through much of 2025.
Demand for credit cards remains subdued, with enquiries down 17.4% year on year, continuing the softer demand trend seen over recent months.
Personal Loans Remain Elevated
Personal loan arrears improved slightly from 10.1% to 10.0% in March, but remain elevated and broadly unchanged year on year. This continues to highlight that repayment pressure remains more pronounced for some borrowers in unsecured lending.
Demand remains relatively strong, with personal loan enquiries up 7.9% year on year, although enquiry volumes have softened compared with the stronger growth rates seen earlier in the year.
BNPL Improves After Consecutive Increases
BNPL arrears improved in March, falling from 9.5% in the previous report to 8.8%. This marks the first improvement after several consecutive monthly increases earlier in the year.
Demand for BNPL remains stable, with enquiries up 3.5% year on year, reinforcing that the product continues to play a significant role in consumer spending and first-time credit usage.
The Bigger Picture
Compared with our April market report, overall credit conditions have continued to improve:
- Total consumer arrears have fallen from 473,000 to 459,000
- The arrears rate has dropped from 12.09% to 11.72%
- Mortgage arrears have improved from 1.42% to 1.39%
- Credit card arrears have edged up slightly from 4.0% to 4.2%
- Personal loan arrears have eased from 10.1% to 10.0%
- BNPL arrears have improved from 9.5% to 8.8%
The latest data suggests household repayment performance is continuing to stabilise, particularly across mortgages and overall consumer arrears. However, unsecured lending remains the key pressure point, with personal loan arrears still elevated and a significant number of consumers remaining in serious arrears.
As we move into the middle of the year, the key question will be whether improving mortgage conditions and lower interest rates continue to flow through into unsecured lending performance, or whether pressure remains concentrated across personal loans and BNPL.
