Introduction

Use our free letter template to ask for a breakdown of the account if you are being pursued for a mortgage shortfall debt by your mortgage lender. Mortgage shortfall debts can be confusing, and so the first step is to seek clarity on the situation with a breakdown of the account and your questions answered.

Our letter does exactly that. Simply download our individual or joint letter template depending on if you have a single or joint mortgage, and then add your own details and send it off. You should hear back from your mortgage lender soon with key information to plan your next move. 

Letter Template

To Whom It May Concern

Regarding Case #: [your case number]* (required)

Thank you for your [letter/telephone call]* (required) concerning the above account.

I do not admit the debt. Also, we do not admit any debts mentioned in previous letters.

In order for me to deal with the matters you raised, please can you supply me with answers to the following questions?

When did the arrears begin?

When was the last payment made on the account?

When was any possession order given?

When was the house sold?

What valuations were made on the property before the sale?

What costs were involved in maintaining the property during the period between the repossession and the sale?

How was the house marketed and sold, and at what price?

What costs were involved in selling the property?

Has a claim been made against any indemnity insurance and how much was recovered?

How has interest been calculated from the start of the arrears?

Please supply me with a full breakdown of the balance claimed under the above account.

I look forward to hearing from you.

Yours sincerely


Downloadable Resource

The download links below take you to a Google document template where you can make a copy or save in any document format you like. Note, you may have to login to your Google account.

Download – Single (for one person)
Download – Joint (for couples)

What is a mortgage shortfall?

A mortgage shortfall can occur when you either have your home repossessed or hand back the keys to your mortgage provider. If the property is sold for less than the mortgage value, you will need to pay the difference to cover the mortgage amount you took out to buy the home. The mortgage shortfall may include the capital (the money borrowed), the interest (the interest on the money you borrowed) and other fees. 

How long can I be chased for a mortgage shortfall?

The Limitations Act 1980 outlines how long lenders can chase people in debt for money before the debt becomes legally unenforceable, also known as statute barred. The length of time varied for different types of debt. 

When chasing a mortgage shortfall, the lender has 12 years to recover the capital of the mortgage, which is what most people will need to pay back. In simple terms, if the property sold for £5,000 less than the mortgage, £5,000 would be the capital and the amount that the lender can chase for 12 years. Any interest payments on the mortgage shortfall can only be chased for six years. 

Am I allowed to ask for a mortgage shortfall breakdown?

If you have been notified of a mortgage shortfall debt, you are legally allowed to ask for a breakdown of the account under the Data Protection Act 2018. There should not be any charges to request this information, as long as your requests are reasonable. 

Can I dispute the mortgage shortfall?

It may be possible to dispute the mortgage shortfall for various reasons. People will dispute mortgage shortfall debt because they claim the lender has not sold the property for the best price, which has caused the mortgage shortfall. The Financial Conduct Authority (FCA) states that the lender must sell for the best price. 

But before you gather evidence or dispute the mortgage shortfall, the first step is to gather information about the account and get your initial questions answered. This is why we have created our free letter templates to request mortgage shortfall account information. Use it to start the process with clarity. 

About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more
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