You have contacted me regarding the amount you claim is owed as a shortfall on the mortgage following the sale of my property.
I understand you are a member of the Council of Mortgage Lenders (CML). As you will be aware, the CML has the following policy on obtaining repayment of mortgage shortfall debts. This applies to all CML members.
“Lenders are committed to fair and sympathetic treatment of people who have suffered repossession, and accept that individuals should not face long delays before lenders contact them to discuss repayment of the shortfall.”
“From 11 February 2000, lenders who are members of the CML have agreed voluntarily that they will begin all recovery action for the shortfall within the first six years following the sale of a property in repossession. Anyone whose property was taken into possession and sold more than six years ago, and who has not been contacted by their lender about recovering any outstanding debt will not now be asked to pay the shortfall.”
The property in question was sold on . Also, the first contact I had from yourselves was on . As my property was sold more than six years ago and you have not contacted me within this time, we should not be asked to pay any outstanding shortfall debt.
I draw your attention to the Financial Conduct Authority’s ‘Mortgages and Home Finance: Conduct of Business sourcebook’ which says 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 sale.
Please confirm in writing that you will not pursue us for any outstanding shortfall debt.
I look forward to hearing from you.