IBAS - Independent Banking Advisory Service
Mortgage Shortfall Debt Claims Guidance
Updated: 21st February 2024
IBAS Mortgage Shortfall Debt Claims Unit has 30 years experience investigating and resolving mortgage shortfall debt liability claim cases after home repossession/s.
Mortgage Shortfall Debt Claims have a Limitation period of 12 years but lenders will pursue after that time has expired. Legally they are still allowed to do so.
The borrower then needs to know if the Shortfall Claim against them is statute barred to contest the Mortgage Shortfall Debt Claim.
Lenders and their solicitors will limit the facts in their claim to entice borrowers to make proposals to pay - underhand yes - but they do that to gain your proposals as once provided your proposals will tie you to the debt regardless.
Banks and Lenders will pursue Mortgage Shortfall Debt Claims and Disputes into Litigation regardless of Limitation if they are allowed to get away with it - their solicitors will pursue you once instructed by the Lender for the Mortgage Shortfall Debt Claim after sale of the property
Lenders target individuals with existing UK mortgage shortfall debts continually.
Does your Lender have new information about your circumstances?
i.e. have you moved in with a partner who has a mortgaged property with equity?
Personal information from voting lists, Land Registry charge sheets and applications for new borrowings (i.e. Mobile phones) from your post code are always being 'trawled' by lenders seeking payment of shortfall debts.
Any information found by the Lender which indicates that property or assets can be targeted for payment then puts new partners or even family members at risk from beneficial interest legal claims against their assets.
If you were forced to leave your home with a mortgage shortfall debt claim and are now living in a mortgaged property with a new partner, family member or a friend your old mortgage shortfall debt claim position needs to be properly assessed so that it does not detrimentally and financially affect them and you later - Check out your position now
IBAS is completely independent
Contact IBAS - quickly obtain practical and confidential assistance - it may also put your mind 'at rest'
IBAS involvement is often sufficient for the lender to place legal proceedings 'on hold' in many cases and allow us time to investigate outstanding issues and seek an appropriate conclusion
Mr B's Testimonial for IBAS
I am absolutely lost for words with this outcome. I would like to thank all the staff of IBAS who have worked on my case or in the background.
You have lifted a huge burden of debt off my shoulders and saved my home from the clutches of (redacted). I appreciate all the work you have done for me, right from the first day when you took my phone call.
Independent Banking Advisory Service have totally exceeded my expectations.
Whilst I was pinning my best hope on IBAS negotiating a reduced final settlement that I’ll be paying off for years to come, you managed to get a bigger and better outcome for me. The incredible letter written to the Regulators was beautifully crafted and presented to achieve a purpose and it did.
That letter showed the meticulous investigation and analysis IBAS did on my file and you were able to extract all the key points from the investigation and presented them in a logical order to the Regulator to achieve maximum impact.
IBAS analysis revealed aspects of my case and conduct of the lender that I wasn’t even aware of myself. As a result, the lender knew the game was up. They threw in the towel and wrote off the entire mortgage shortfall debt of £70,000 remaining.
I feel a huge sense relief after 15 years of stress and the lender hoping to recover their inflated debt from my home. In many ways, IBAS is the real winner in this case.
Their dual knowledge of the rule book and how banks sometimes operate on the fringes of legal conduct and what is morally acceptable, allows them to spot where questionable act and actual misconduct has taken place.
IBAS is quietly providing a very valuable service to the public but they’re not as widely known as they should be. It took me numerous Google searches before I found IBAS website. I would recommend IBAS to anyone in the UK who is having problems with their bank or mortgage lender. Don’t try doing it by yourself, allow IBAS, the professionals to sort it for you. Thank you IBAS!
I am relieved at long last. Couldn’t have done it without you! I am so grateful to you for having been there for me. Once again thank you for your expertise and support throughout.”
Finding 'flaws' in a lender's paperwork or their legal claim for a mortgage shortfall debt claim provides us with immense pleasure and the results
Contact IBAS quickly obtain practical and confidential assistance
IBAS has a very experienced team providing a unique, totally independent, low priced professional, experienced and confidential service. Our knowledge has been collated from thousands of IBAS cases over many years which provides unique backup information only available to IBAS which is used to assess where to investigate and what will produce the best results for our members.
Mortgage Express, Bradford & Bingley and Northern Rock Interest Only BTL Mortgage holders are now being pursued by solicitors acting for UKAR (Drydens, DWF and others) and the tactics used now remind us of our research when we published IBAS Mortgage Shortfall Debt Claims Survey (which was a year long study of 4,259 customers with Mortgage shortfall debt claims which followed UK home repossessions and repossession debt claims during the last recession).
As with all such cases the facts and specialist advice are crucial for a good result to be obtained for the borrower - DIY defences or forum 'defences' may be inadequate or financially dangerous as defences which did exist may be compromised.
UK House repossession or UK home repossessions are followed by property sales by the lenders. There may be a shortfall on the mortgage after sale, as repossession and 'forced' sales attract many who seek to buy 'distressed' homes at a large discount from lenders or their agents.
A borrower forced into repossession remains liable under the Mortgage Deed for any mortgage shortfall debt liability and the mortgage deed allows the lender 12 years to obtain payment from the 'cause' of the claim
Mortgage Shortfall debt recovery follows after the property is sold when the lender knows exactly what remains to be paid on the mortgage they provided. The balance on the mortgage (if negative) remaining after the property sale becomes a 'mortgage shortfall'. The lender should issue a completion statement which proves their position to the borrower and should at the same time request or demand payment for their Claim on the Mortgage Shortfall Debt.
Unfortunately, an LPA receiver being involved after possession of your property may also delay the sale and the Limitation Period of 12 years starting but once the lender demand for payment of the mortgage shortfall debt claim is issued they will be actively ‘searching’ all their sources of information (including their internal notes) for how best to obtain payment from the ex customer. The Lender continues searching all their data bases seeking a new address and that is why some Mortgage Shortfall Debt Claims are served many years after the event of repossession and sale of a property.
Please Note: lenders have twelve years in which to commence action to recover a mortgage shortfall debt but The Limitation of 12 years will also restart when payments are recorded (no matter how small) or written proposals to settle the debt are provided to the lender.
Much of the lender 'recovery' knowledge is then gained from their Internal Notes: The ‘internal notes’ record the employee's personal observations and details of the customer, their family and relatives, including assets and property and possible inheritance claims. Sometimes also very personal and specific details. All are of value to the lender in seeking payment for a mortgage shortfall debt debt claim.
“When there were many creditors still chasing me for debts after my home had been repossessed 5 years ago the last thing you want was another 50k mortgage short fall. When all options had ran out there was only one thing left to do which was to declare bankrupt .however, just before I commit myself I embarked upon IBAS website in my search engine. I had tried Financial Ombudsman and got nowhere.
But it was my last straw so I thought I’ll give it a go. As soon as I became a member things got on pretty quickly. They gave me all the questions and I reply with all the answers. My situation was that it’s highly unlikely I can repay this kind of debt in my life time.
IBAS assessed my situation and told me what would be the likely outcome of my case. IBAS negotiated a full and final settlement offer to the lender on my behalf successfully. It was the biggest relief I had since I got buried in this financial turmoil. I can’t thank Sara Cummings and her team in IBAS enough.
Thanks guys and deeply appreciated all your helps. Mortgage Shortfall people out there please go to IBAS and find out more.”- Mr C Testimonial
Testimonial for IBAS:
"You were the light at the end of a very long and dark tunnel".
"Many many thanks. Now we can look forward to the future without fear for our home".
"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."
IBAS has featured on BBC TV, BBC 1999 Testimonial for IBAS BBC TV News, ITV News, Meridian TV and Sky TV News since 1992 and contributed banking editorials and business banking articles for Sunday Times, Times, Daily Mail, Daily Express, Telegraph and Daily Mirror.
Independent Banking Advisory Service (IBAS) - launched in 1992 as a specialist UK Business Banking Dispute - Resolution Experts assisting and advising UK Business Bank customers who have UK business banking account loan disputes and business banking debt disputes.