This happens when the amount your home is sold for is not enough to pay the outstanding mortgage and any secured loans. Money you still owe to your mortgage or secured loan lender in this situation, is called a ‘mortgage shortfall’. In other words, a shortfall occurs when the value of a seller’s remaining mortgage is greater than the sale price of their property, forcing the seller to pay the difference in order to discharge the mortgage. Mortgage short fall debt is an unsecured debt.

A lender can only recover a shortfall debt if it is viable to do so and if they do, they must tell you in writing, within six years of the date your home was sold. Mortgage shortfall debt will become statue barred under Limitations Act 1980 after 12 years of the sale of property.

Please call us to:

• Find out how long you can be pursued for a mortgage shortfall debt;
• Check your rights if you owe a mortgage shortfall debt jointly with someone else;
• Find out if it is worthwhile disputing the amount your lender says you owe;
• See if you can complain about your mortgage lender; and
• Get some practical advice about your options to deal with your mortgage shortfall debt.