Dispute liability for a mortgage shortfall | Sample letter

This sample letter covers England and Wales

To view all sample Letters that cover Scotland, please click here.

Use this letter to dispute liability if your lender has not contacted you for over 12 years, and you have not made a payment or written acknowledgment during this period. You can find more 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.

Change to joint version

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26th January 2025 [today’s date]*

Dear Sir/Madam

Account No:

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You have contacted me regarding the above account, which you claim I owe. I do not admit any liability for the debt.

The Limitation Act 1980 Section 20(1) states the following.

“No action shall be brought to recover (a) any principal sum of money secured by a mortgage or other charge on property (whether real or personal);…after the expiration of twelve years from the date on which the right to receive the money accrued”.

Also, UK Finance has agreed that with effect from 11 February 2000, anyone whose property was repossessed and sold and has not been contacted by their lender within six years of the date of sale, will not be asked to pay the shortfall. Whether or not you are a member of UK Finance, this policy is good practice and I urge you to follow it.

I also refer you to the Financial Conduct Authority’s ‘Mortgages and Home Finance: Conduct of Business sourcebook (MCOB)’, which states 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 the sale.

Please confirm in writing that the matter is now closed and that you will not make any further contact with me about the above account.

I look forward to hearing from you.

Yours faithfully

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Change country

Time has run out to recover a mortgage shortfall (sole name)

Time has run out to recover a mortgage shortfall (sole name)

Letter in joint names