Covid 19 Status

In line with HM Government requirements to fight the spread of Covid-19 we have measures in place to ensure that we protect our staff, their families and the wider community, but also to ensure that there is minimal disruption to our customers.

Your access to online Multi Agency Credit Reports, Expert Help and Account Management remains unaffected. We take great pride in the support that we provide to our customers and throughout this period will do all we can to minimise the impact on our services. While the country remains in lockdown we will continue to support your queries via a dedicated and experienced team that will be securely working from home, and supported by a Management Team that will continue to be based at our head office and who will be able to provide customer support as required.

The security measures that we have in place to protect your Personal Data, in line with our Privacy Policy, will mean that some elements of our personalised support are affected during this period as our support team will be working with anonymised data when working remotely. Freephone access to our Credit Analysts has been removed during this period while we focus our efforts on continuing to reply to all of your emails and secure messages within one working day.

Thanks for your understanding, and we hope to have full customer support available as soon as possible and wish you well during these challenging times.


What is shortfall?

Shortfall is credit slang used to describe any loss between the sale proceeds of a property following repossession, and the mortgage debt.

This can occur if a home is repossessed while in negative equity, or is worth less than was paid for the property. If your house is repossessed and the lender does not make enough from the sale of the house to cover the outstanding mortgage plus costs, they may sue you for the shortfall.

Under the Limitation Act 1980, you are liable for any capital shortfall for twelve years from the date you last made any payment on the mortgage debt, or twelve years from the date you last acknowledged the debt in writing. The lender has only six years to sue for any interest due on the capital amount.

This differs somewhat from the guidelines issued by the Financial Services Authority and the Council of Mortgage Lenders. These state that the lender should not pursue the shortfall if it has not contacted you regarding the debt within the last six years. If you took out Mortgage Indemnity Insurance, this may cover the lender for any shortfall loss.

Q: Am I liable for any shortfall in the property value when it is sold?

A: Yes. The mortgage lender may sue you for the remaining shortfall in costs raised when selling the property. Furthermore, you are liable for any shortfall in a 12 year period after the most recent payment.

Q: Is there any way to prepare for mortgage shortfall?

A: Shortfall insurance is often widely available to protect against any loss of value of the property if it needs to be sold as a result of repossession.

Jargon Buster

Use the links below and the resulting list of terms on the right to locate the term you are looking for. If you can't locate it, please get in touch.