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Sample Letter

Ask your mortgage lender to accept a full and final settlement offer of payment (sole name)

Use this letter to help you negotiate a full and final settlement offer with your lender. This is a type of offer where you ask the lender to accept part of the amount you owe and write off the rest. You can find information about how to use this letter in our Mortgage shortfalls fact sheet

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
You need to include the organisation name.
Name of the organisation you are writing toInclude the name of the person or creditor you are writing to.
You need to include their address.
Their address line 1Make sure you include the full address for the person or organisation. Don't forget the post code.
Their address line 2
Their address line 3
You need to include their postcode.
Their postcodeDon't forget their postcode.
You need to include your address.
Your address line 1Make sure you include your full address.
Your address line 2
Your address line 3
You need to include your postcode.
Your postcodeDon't forget your postcode.

27th November 2020

Dear Sir/Madam
Without prejudice
Account No:
This field is required.
Your account or reference numberYou will find your account or reference number on any paperwork from your creditor.
I am writing about the money which you are claiming I owe on the above account.
I can confirm that I am unable to offer to pay in full what I owe.
This field is required.
Include a paragraph explaining your circumstances and details of your financial situation that you want the creditor to take into account.
However, I can raise £
This field is required.
Put the amount which you can afford to pay.
and I want to offer this as an ex-gratia payment in full and final settlement of the account.
This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any further action to enforce or pursue this debt in any way whatsoever and that I will be released from any further liability.
I also request that, if accepted, you will make an entry on my credit reference agency file relating to the above account as ‘satisfied’ in full.
Payment can be made within
This field is required.
Put the number of days or weeks within which you will pay.
of receiving your written agreement to this offer. Please indicate your preferred method of payment.
I look forward to hearing from you.
Yours faithfully
You need to include your name(s).
Include your full name