Mortgage Shortfall

What is a Mortgage Shortfall?

You may have had your home or property repossessed. You may have returned the keys to the property to your mortgage lender. You may still be told you owe money. This is what is commonly referred to as a mortgage shortfall. This occurs when the amount the property in question is sold for is not enough to cover the outstanding mortgage or other debts secured against it.

The money still owed in this circumstance is referred to as a mortgage shortfall. This amount also takes into account monthly instalments and interest included in the debt whilst the property is for sale. Indeed, until completion of sale, you as the homeowner are liable for any and all costs. Another factor to consider is legal & estate agency fees, which the homeowner is liable for also.

mortgage shortfallMortgage Shortfall Timeline

The length of time for which you can be pursued for a debt is set out in the Limitation Act 1980. In this, rules for the length of time a creditor can pursue or ‘chase’ you for an outstanding debt are outlined. This timeline has been subject to several court cases, with the Court of Appeal deciding the limitations as they currently stand for a mortgage shortfall.

Mortgage capital refers to the sum of money originally borrowed. If you have a debt of this sum, the lender in question has twelve years in order to pursue the debt in a court of law. If you should owe interest, your lender can continue to charge interest after the sale of your home/property. In regards to this specific form of mortgage shortfall debt, the lender has a timeline of six-year in which to use court action.

Mortgage Shortfall Help


As with many things, time is off the essence with a potential mortgage shortfall. Act now before your hand is forced. Or, even worse, the decision is in the hands of your lender. If you are precipitating a mortgage shortfall, it is imperative you receive the correct help. Immediate Bank Claims is on hand to provide emergency assistance.

If you are confused about any issues in regards to a potential mortgage shortfall, we would be happy to speak with you. Our dedicated consultants specialise in cases of a mortgage shortfall. We can make you aware of your options. We can even negotiate with the banks on your behalf.

Call us now to discuss your options. To reach our London-based Head Office, dial 020 7127 9134. Alternatively, you can also email our team on

Don’t worry about a potential mortgage shortfall. Act now!

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