Sample letter

Ask your mortgage lender not to pursue the shortfall (sole name)

Use this letter where your house was sold more than six years ago and you were first contacted by the lender after 11 Feb 2000.  Lenders should not pursue the mortgage shortfall under the UK Finance policy. You can find information about how to use this letter in our fact sheet Household mortgage shortfalls.

Letter in joint names

You can choose to send a letter in your own name or in joint names. You may have a debt in joint names, or want to write to your creditors together because you have worked out a joint budget.
  • Fill in your contact details, account number and any extra information you want to include in the grey shaded areas.

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25 November 2020

Dear Sir/Madam

Without prejudice

Account number:

You have contacted me regarding the amount you claim is owed as a shortfall on the mortgage following the sale of my property.

I understand you are a member of UK Finance. As you will be aware, UK Finance has the following policy on obtaining repayment of mortgage shortfall debts. This applies to all UK Finance members.

“Lenders are committed to fair and sympathetic treatment of people who have suffered repossession, and accept that individuals should not face long delays before lenders contact them to discuss repayment of the shortfall.”

“From 11 February 2000, lenders who are members...have agreed voluntarily that they will begin all recovery action for the shortfall within the first six years following the sale of a property in repossession. Anyone whose property was taken into possession and sold more than six years ago, and who has not been contacted by their lender about recovering any outstanding debt will not now be asked to pay the shortfall.”

The property in question was sold on . Also the first contact I had from yourselves was on . As my property was sold more than six years ago and you have not contacted me within that time, I should not be asked to pay any outstanding shortfall debt.

I draw your attention to the Financial Conduct Authority’s ‘Mortgages and Home Finance: Conduct of Business sourcebook’ which says that if a lender decides to recover a mortgage shortfall debt they must make sure the borrower is informed of this within six years of the date of sale.

Please confirm in writing that you will not pursue me for any outstanding shortfall debt.

I look forward to hearing from you.

Yours faithfully