This happens when the amount your home is sold for is not enough to pay the outstanding mortgage and any secured loans. Money you still owe to your mortgage or secured loan lender in this situation, is called a 'mortgage shortfall'.

When a mortgage company takes possession of a house, they generally sell it. If the house sells for less than the money that’s owed under the mortgage, the mortgage company may ask the borrower to pay the difference - the “shortfall”.


We provide professional advice to people who are being contacted by the mortgage lender or its representative solicitor / debt collector to pay extra sum after their home has been repossessed and sold or are unsatisfied with the way the mortgage company has been trying to recover the money.;

  • Your Repossessed House Might Be Sold for Too Little: If you think that your repossessed house was sold under value hence it's the mortgage company's fault that there's a shortfall. We will verify the entire process since the house was valued, marketed and finally sold.
  • Lender’s Procedure for Recovery of Shortfall: We will examine the complete recovery procedure adopted by the mortgage lender or its representative to discover any harassment tactics used, number of times contact established with the debtor and seriousness of the lender to reach an arrangement with the debtor to pay the shortfall.
  • Age of the Shortfall Debt: Another important factor in considering the viability of a mortgage shortfall debt is the total time since this debt has arisen. Sometimes the mortgage lender or its representative do not get in touch with the debtor at all about the shortfall until years after the repossession and suddenly get back in contact. We’ll consider whether it’s fair for the lender to continue to recover the money by taking into account the time limits that apply and any contact that’s been made in the meantime.

Under the light of Limitations Act and Mortgage Conduct of Business Rules (MCOB) if we evaluate that it is unfair for a mortgage company to recover a shortfall or they’ve acted unfairly in the way they’ve tried to recover it, we may tell them to write it off, put in place a fair repayment agreement, or pay compensation for any upset they’ve caused.


The debt solution against mortgage shortfall primarily depend upon the lender’s presale procedures, current circumstances of the debtor, aging of the shortfall debt and timing of the contacts received from the mortgage lender. The possible debt solutions for mortgage shortfall may include debt written off, partial settlement, repayment arrangement against partial settlement and repayment arrangement as per the debtor’s affordability.


Mortgage Shortfall liability is a meticulous type of debt and utmost care must be exercised before determining its enforceability. Therefore professional advice is highly recommended before opting for any solution against the shortfall liability.

It is very important to know that a nonprofessional or poor 'advice' can easily make you liable for debt which can even cost you your home.



Short Fall Case

End Result


Mr. Syed ***** vs GMAC

Written Off


Mrs. Rana **** vs HBOS

Written Off


Ms Aesha **** vs Kengsinton Mortgage Co

Partially Written Off


Mrs. Anee **** vs Northern Rock

Written Off


Mr. Pram **** vs Harpmanor Limited

Repayment Plan Against Partial Settlement


Our charges for dealing with your mortgage short fall lender are subjected into three categories:-


We plan to help clients in financial matters through our professional debt solution secialist, to provide all our clients with a results driven service. We intend to provide optimum customer satisfaction by providing them with peace of mind.


As per the your inquiry about the shortfall problem First Credit Advice Limited will review your information and assess if the you are eligible for our services. We shall use the in-house questionnaire for accessing the eligibility to obtain our services against your creditor.

2. Pre-Contract Information:

We shall send following documents to client initially:

  • FCAL Debt Solutions Guide
  • Debt Solutions Matrix
  • Information Pack
  • Terms and Conditions

3. Signing Up:

We shall call you at your convenient time to review the debt solution options available over the phone and will discuss in detail the pros and cons of every solution. If you want to take on our services for reduced monthly settlement negotiation, we will then send you following documents:

  • Client Care Letter
  • Letter of authority
  • Contract
  • Income and expenditure statement

4. Invoice:

After receiving the signed Contract and Letter of Authority we shall send invoice to you.

5. In-House Process:

On receipt of payment we shall start the case officially.

6. Contacting Your Lender:

We shall represent you in connection with mortgage shortfall case and request your lender for the required documents necessary to carry out our assessment.

7. Updates:

Updates will be taken on day to day basis from the lender and will be provided to the client either in written format or over the phone.


Other guides can tell help you in dealing with your finances generally, for example the Money Advice website which you can access by following this link:


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