Ask your mortgage lender not to pursue the shortfall | Sample letter

Use this letter where your house was sold more than six years ago and you were first contacted by the lender after 11 February 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 Mortgage shortfalls guide

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.
Today’s date will be added automatically.
Sign each letter and enclose a copy of your budget if needed.

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.

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10th December 2024 [today’s date]*

Dear Sir/Madam

Without prejudice

Account No:

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You have contacted me about the account with the above reference number, which you claim I owe. I do not admit any liability for your claim.

I understand you are a member of UK Finance. As you will be aware, UK Finance has the following policy on obtaining repayments. 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 Insert the date. (required)
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Insert the date.
. Also, the first contact I had from yourselves was by phone/in writing. (required)
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by phone/in writing.
on Insert the date. (required)
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Insert the date.
. As my property was sold more than six years ago and you have not contacted me within this time, I should not be asked to pay the amount you allege I owe.

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 make any further contact about the above claim and confirm that this matter is now closed.

I look forward to hearing from you.

Yours faithfully

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

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

Letter in joint names