Independent Banking Advisory Service 

Mortgage Shortfall, Mortgage Shortfall Debt & Mortgage Shortfall Myths

I’m being chased by Debt collectors for old mortgage debt -- I’m being chased by Wragge & Co (or Drydens, HL Interactive, Eversheds or Asset Recoveries UK Ltd) for a distant, or past mortgage shortfall -- I’m trapped by my ex husband’s debts --- My Girlfriend’s ex husband left her in debt -- My ex-husband’s debt may cost us our home - We have just received an assignment on a mortgage debt from 17 years ago -- My ex-husband has gone bankrupt and I’m now liable for the mortgage debts -- My ex-wife left me in debt more than 12 years ago and now the lenders are claiming a shortfall debt -- My partner and I have married recently but she’s just received a claim for a previous mortgage shortfall debt – My Wife’s mortgage debt and old mortgage liability has now become mine after 15 years -- I’ve been told the CML six year code should help me but the lenders are not taking any notice and now they are issuing a claim into court with 12 years interest -- A Joint and Several debt is being claimed against me, because my wife left me with her debts -- I’ve been told my shortfall debt claim is outside limitation but the lender’s taking me to court and also claiming interest – We were told when we handed the keys back that the lender would write the debt off.

It's natural you will want to know our 'pedigree' - visit UK Bank News 2009 for most recent Banking News and you will also find our national newspaper comments plus many more in the News and archives sections of our site - see our site map. IBAS has featured in BBC TV and ITV News items and programmes on banking and the banking issues many times since we were established in 1992.

Let's 'explode' Myth 1 = Mortgage Shortfall Debts do not disappear and lenders do not ‘write these debts off’. That’s why the above comments have been the starting point for conversations with those seeking assistance from IBAS since 1992.  

Mortgage shortfall debts are sometimes sold on, or sold off to debt collectors - but those cases are very rare. This is because the law allows lenders to pursue a mortgage shortfall debt for a very long time. Therefore, it is in the lender’s best interest to just wait so that they can obtain payment and also obtain past interest by making a claim in a court action, as long as they remain within the limitation period, which may be more than the 12 years from the debt, depending on subsequent activity.

Let's 'explode' Myth 2 = You cannot assume to be 'free' of a mortgage shortfall debt just because 12 years has passed since a repossession.

Court costs, fees and interest can be part of a claimed debt - if you defend and lose - you may pay considerably more. After losing you may face a charging order on your property or an order for sale to obtain full payment of the Judgment debt.

Lenders are more likely to take these actions when someone defends their claim. If there's equity in your property, it's essential that any defence to a claim you put forward is properly supported by fact and case law before filing it into court. If it's not - you risk the debt becoming larger and you may also lose your home because of it.

One of our members wrote in: "After almost eight years we are finally free of this nightmare and have no fears of what the postman might bring. May we take this opportunity to express our thanks and appreciation for all the help and advice we have received."

When IBAS assess mortgage shortfall debt claims we look for all the facts and proof of what has happened and also how – then we test the lender’s claim against the facts. Some lender’s claims do not stand up to our scrutiny and on these the lenders admit defeat.

Cases can ‘turn’ on one sheet of paper, so it's not possible to decide from a single telephone conversation or a ‘snap shot’ of information, whether a claim is good or bad.

We can resolve mortgage shortfall debt claims under low cost, confidential membership and advise directly and deal with the lender on your behalf, whilst working towards a solution for your benefit, reducing or removing the stress, anxiety and uncertainty. Our advice and assistance is invaluable where there is another property.

We are completely independent and unique - we have no financial support from lenders or government and have been a non profit making organisation since our launch in 1992.

IBAS mortgage shortfall Testimonials

A team of dedicated and experienced volunteers provide a unique and totally independent, low priced, professional, confidential and knowledgeable assistance quickly at low cost to those with mortgage shortfall debt claims, using procedures which have been developed from our case work and which are proven to resolve mortgage shortfall debt claims.

If you require truly independent and impartial banking advice plus direct assistance from a unique specialist organization campaigning on banking issues, which directly helps our members - email us for help.  

Independent Banking Advisory Service (IBAS) is a national, independent, non-profit, unique specialist banking customer membership organization which resolves banking complaints and disputes and which has campaigned on UK Banking customer issues since 1992. We provide bank and banking assessment, analysis, bank comment and content for BBC TV News, ITV, Radio and national newspapers, keeping many serious banking issues 'alive'.